CSG Systems International Inc (CSGS)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,500,690 | 1,387,450 | 1,353,290 | 1,292,950 | 1,443,050 | 1,329,600 | 1,293,070 | 1,296,010 | 1,348,550 | 1,259,140 | 1,290,680 | 1,303,330 | 1,387,150 | 1,364,760 | 1,291,680 | 1,274,480 | 1,332,000 | 1,271,820 | 1,269,380 | 1,224,460 |
| Total stockholders’ equity | US$ in thousands | 282,569 | 288,411 | 273,329 | 269,340 | 273,326 | 260,491 | 383,311 | 368,223 | 355,249 | 344,305 | 377,022 | 410,537 | 436,609 | 439,989 | 439,780 | 427,715 | 422,395 | 409,927 | 397,622 | 386,831 |
| Financial leverage ratio | 5.31 | 4.81 | 4.95 | 4.80 | 5.28 | 5.10 | 3.37 | 3.52 | 3.80 | 3.66 | 3.42 | 3.17 | 3.18 | 3.10 | 2.94 | 2.98 | 3.15 | 3.10 | 3.19 | 3.17 |
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 shown fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio measures the company's level of debt relative to its equity, indicating the amount of leverage used to finance its operations.
The financial leverage ratio started at around 3.17 in March 2020 and remained relatively stable around 3.1 to 3.2 until March 2021. In the subsequent quarters, the ratio declined to 2.94 by June 2021, indicating a lower level of debt relative to equity. However, from September 2021 onwards, the ratio began to increase steadily, reaching 5.31 by December 31, 2024.
The increasing trend in the financial leverage ratio suggests that CSG Systems International Inc has been relying more on debt to finance its operations compared to equity. This could indicate a higher financial risk for the company as greater leverage amplifies the impact of fluctuations in earnings on shareholder returns.
It is essential for investors and stakeholders to closely monitor the financial leverage ratio of the company to assess its ability to meet financial obligations and manage its debt levels effectively. A high financial leverage ratio may raise concerns about the company's financial stability and creditworthiness, while a lower ratio may indicate a more conservative capital structure.
Peer comparison
Dec 31, 2024