CSG Systems International Inc (CSGS)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	142,741	119,153	123,983	125,911	129,133	139,277	140,131	139,362	131,632	126,875	116,809	121,863	123,406	118,198	118,971	106,588	109,167	114,857	122,159	134,493
Interest expense (ttm)	US$ in thousands	30,469	31,066	31,324	31,463	31,176	29,238	25,530	20,379	16,432	14,665	14,767	16,498	17,590	17,579	17,541	17,904	18,483	19,135	19,842	20,260
Interest coverage		4.68	3.84	3.96	4.00	4.14	4.76	5.49	6.84	8.01	8.65	7.91	7.39	7.02	6.72	6.78	5.95	5.91	6.00	6.16	6.64

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $142,741K ÷ $30,469K
= 4.68

CSG Systems International Inc's interest coverage ratio has shown fluctuating trends over the provided periods. The ratio started at 6.64 in March 2020, indicating the company's ability to cover its interest expenses approximately 6.64 times with its operating income. The ratio decreased slightly to 5.95 in March 2021 but then started to improve, reaching its peak at 8.65 in September 2022. However, it dropped again to 3.84 by September 2024.

Overall, the company's interest coverage ratio has displayed both strengths and weaknesses during the analyzed period. A higher interest coverage ratio is generally preferable as it signifies that the company is more capable of meeting its interest obligations. Conversely, a declining ratio may indicate that the company could potentially have difficulties meeting its interest payments from its operating profits. It is important for stakeholders to keep track of these fluctuations to assess the company's financial health and ability to service its debt obligations effectively.