CSG Systems International Inc (CSGS)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,500,690 | 1,443,050 | 1,348,550 | 1,387,150 | 1,332,000 |
| Total stockholders’ equity | US$ in thousands | 282,569 | 273,326 | 355,249 | 436,609 | 422,395 |
| Financial leverage ratio | 5.31 | 5.28 | 3.80 | 3.18 | 3.15 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,500,690K ÷ $282,569K
= 5.31
The financial leverage ratio of CSG Systems International Inc has exhibited an upward trend over the past five years, increasing from 3.15 in 2020 to 5.31 in 2024. This indicates that the company's reliance on debt to finance its operations has been on the rise. The ratio surpassed 3.0 in 2020, which is often considered the threshold for high leverage. The substantial increase in the ratio from 2022 to 2024 suggests a significant expansion in the proportion of debt in the company's capital structure. Investors and stakeholders may need to closely monitor the company's debt levels and repayment capabilities, as elevated financial leverage can magnify risks during economic downturns or interest rate fluctuations.
Peer comparison
Dec 31, 2024