CSG Systems International Inc (CSGS)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 142,741 | 123,877 | 77,213 | 118,536 | 105,564 |
| Interest expense | US$ in thousands | 30,469 | 31,176 | 16,432 | 17,590 | 18,483 |
| Interest coverage | 4.68 | 3.97 | 4.70 | 6.74 | 5.71 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $142,741K ÷ $30,469K
= 4.68
Interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. For CSG Systems International Inc, the interest coverage ratio has exhibited some fluctuation over the years. In 2020, the ratio stood at 5.71, indicating that the company generated enough operating income to cover its interest expenses 5.71 times.
By the end of 2021, the interest coverage ratio improved to 6.74, showing a stronger ability to meet interest obligations. However, in 2022, the ratio decreased to 4.70, suggesting a slight decline in the company's ability to cover its interest payments.
In 2023, the interest coverage ratio further decreased to 3.97, indicating a potential strain on meeting interest obligations. However, by the end of 2024, the ratio rose to 4.68, which is an improvement over the previous year but still below the levels observed in 2021.
Overall, while there have been fluctuations in CSG Systems International Inc's interest coverage ratio over the years, the company generally maintained a level above 1, signifying that it generated enough earnings to cover its interest expenses. However, the decreasing trend observed in recent years may warrant monitoring to ensure the company's continued ability to meet its debt obligations.
Peer comparison
Dec 31, 2024