CSG Systems International Inc (CSGS)
Solvency ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.37 | 0.40 | 0.31 | 0.31 | 0.28 | 0.30 | 0.10 | 0.10 | 0.10 | 0.10 | 0.08 | 0.08 | 0.25 | 0.27 | 0.27 | 0.28 | 0.27 | 0.29 | 0.30 | 0.31 |
| Debt-to-capital ratio | 0.66 | 0.67 | 0.51 | 0.52 | 0.51 | 0.52 | 0.26 | 0.25 | 0.24 | 0.24 | 0.19 | 0.20 | 0.44 | 0.45 | 0.46 | 0.47 | 0.47 | 0.48 | 0.48 | 0.49 |
| Debt-to-equity ratio | 1.96 | 2.06 | 1.05 | 1.10 | 1.06 | 1.10 | 0.36 | 0.33 | 0.31 | 0.32 | 0.24 | 0.25 | 0.80 | 0.83 | 0.86 | 0.89 | 0.87 | 0.91 | 0.93 | 0.96 |
| Financial leverage ratio | 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 | 3.23 | 3.16 | 3.15 | 3.12 |
The solvency ratios of CSG Systems International Inc. provide insight into the company's ability to meet its long-term financial obligations and manage its debt levels.
The debt-to-assets ratio, which indicates the proportion of total assets financed by debt, has been relatively stable over the past eight quarters, ranging from 0.30 to 0.42. A lower ratio indicates lower financial risk, as less of the company's assets are funded by debt.
The debt-to-capital ratio, which shows the percentage of the company's capital structure that is financed by debt, has also shown consistency with values ranging from 0.49 to 0.68. This ratio reflects the company's dependency on debt financing relative to its equity capital.
The debt-to-equity ratio, measuring the amount of debt used to finance the company in relation to shareholder equity, has fluctuated between 0.95 and 2.14 over the observation period. A higher ratio suggests higher financial risk and indicates that the company is more reliant on debt to fund its operations.
The financial leverage ratio, which compares the company's total assets to its equity, has varied between 3.17 and 5.28. A higher ratio signifies a higher level of financial leverage and may indicate increased financial risk.
Overall, the solvency ratios of CSG Systems International Inc. suggest that the company has managed its debt levels relatively well, with stable debt-to-assets and debt-to-capital ratios, despite some fluctuations in the debt-to-equity ratio and the financial leverage ratio over the past eight quarters. Investors and creditors typically use these ratios to assess the company's ability to weather financial downturns and meet its debt obligations over the long term.
Coverage ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 3.97 | 4.59 | 4.76 | 4.93 | 4.79 | 5.57 | 9.05 | 14.72 | 25.24 | 23.94 | 23.38 | 21.07 | 21.62 | — | — | — | 38.84 | 6.72 | 6.49 | 6.16 |
Interest coverage is a key financial ratio that indicates a company's ability to meet its interest obligations using its operating earnings. A higher interest coverage ratio implies that the company is more capable of servicing its interest payments with its current level of earnings.
Analyzing the interest coverage ratio of CSG Systems International Inc. over the past eight quarters, we observe a trend of generally improving interest coverage ratios. The interest coverage ratio has shown an increasing pattern from Q1 2022 to Q1 2023, indicating the company's enhanced ability to cover its interest expenses with operating earnings.
In Q4 2022, the interest coverage ratio was 7.61, and it continued to rise steadily in subsequent quarters to reach 8.85 in Q1 2023. This upward trend suggests that the company's operating earnings have been more than sufficient to cover its interest payments, reflecting a strong financial position.
Overall, the consistent improvement in CSG Systems International Inc.'s interest coverage ratio over the past eight quarters signifies a positive trend in the company's ability to meet its interest obligations, which could be indicative of its financial stability and efficiency in managing its debt.