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CSG Systems International (CSG Systems International) Operating Margin %

: 10.99% (As of Dec. 2023)
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Operating Margin % is calculated as Operating Income divided by its Revenue. CSG Systems International's Operating Income for the three months ended in Dec. 2023 was $33 Mil. CSG Systems International's Revenue for the three months ended in Dec. 2023 was $297 Mil. Therefore, CSG Systems International's Operating Margin % for the quarter that ended in Dec. 2023 was 10.99%.

Warning Sign:

CSG Systems International Inc operating margin has been in a 5-year decline. The average rate of decline per year is -2%.

The historical rank and industry rank for CSG Systems International's Operating Margin % or its related term are showing as below:

CSGS' s Operating Margin % Range Over the Past 10 Years
Min: 11.19   Med: 12.66   Max: 17.48
Current: 11.99


CSGS's Operating Margin % is ranked better than
76.86% of 2757 companies
in the Software industry
Industry Median: 3.07 vs CSGS: 11.99

CSG Systems International's 5-Year Average Operating Margin % Growth Rate was -2.00% per year.

CSG Systems International's Operating Income for the three months ended in Dec. 2023 was $33 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $140 Mil.


CSG Systems International Operating Margin % Historical Data

The historical data trend for CSG Systems International's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

CSG Systems International Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.14 11.19 12.33 11.48 11.99

CSG Systems International Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Operating Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.10 14.52 10.58 11.81 10.99

Competitive Comparison

For the Software - Infrastructure subindustry, CSG Systems International's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


CSG Systems International Operating Margin % Distribution

For the Software industry and Technology sector, CSG Systems International's Operating Margin % distribution charts can be found below:

* The bar in red indicates where CSG Systems International's Operating Margin % falls into.



CSG Systems International Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

CSG Systems International's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=140.213 / 1169.258
=11.99 %

CSG Systems International's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=32.662 / 297.324
=10.99 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


CSG Systems International  (NAS:CSGS) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


CSG Systems International Operating Margin % Related Terms

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CSG Systems International (CSG Systems International) Business Description

Traded in Other Exchanges
Address
169 Inverness Dr W, Suite 300, Englewood, CO, USA, 80111
CSG Systems International Inc is a purpose-driven, SaaS platform company that enables companies in a wide variety of industry verticals to tackle the growing complexity of business in the digital age. The company's cloud-first architecture and customer-centric approach empower companies to deliver unforgettable experiences for B2B (business-to-business), B2C (business-to-consumer), and B2B2X (business-to-business-to-consumer) customers, making it easier for people and businesses to connect to, use and pay for the services the company offers. The company operates in one segment i.e. Solutions and Services. Geographically, the company generates revenue from Americas (principally the U.S.).
Executives
Lori Szwanek officer: SVP, Chief Accounting Officer 2803 N 161ST AVENUE, OMAHA NE 68116
Kenneth M Kennedy officer: EVP Product Development 33 W MONROE ST, SUITE 900, CHICAGO IL 60603
Eric Carrasquilla officer: EVP Pres. Customer Experience 1600 SEAPORT BLVD., SUITE 400, PACIFIC SHORES CENTER - BUILDING 6, REDWOOD CITY CA 94063
Rachel A. Barger director 751 SHERWOOD RD NE, ATLANTA GA 30324
Chad Dunavant officer: EVP Product & Strategy Officer 6175 S WILLOW DR 10TH FLOOR, GREENWOOD VILLAGE CO 80111
Alfred George Binford officer: President, Customer Engagement 6175 S WILLOW DR 10TH FLOOR, GREENWOOD VILLAGE CO 80111
Rasmani Bhattacharya officer: SVP, General Counsel 6175 S. WILLOW DR 10TH FLOOR, GREENWOOD VILLAGE CO 80111
David Neil Schaaf officer: SVP, Chief Accounting Officer 6175 SOUTH WILLOW DRIVE, GREENWOOD VILLAGE CO 80111
Hai Tran officer: EVP & CFO C/O SOC TELEMED, INC., 1768 BUSINESS CENTER DRIVE, SUITE 100, RESTON VA 20190
Gregory A Conley director 9197 S. PEORIA ST., ENGLEWOOD CO 80112
Elizabeth A Bauer officer: EVP, CMO & CCO 6175 SOUTH WILLOW DRIVE, 10TH FLOOR, GREENWOOD VILLAGE CO 80111
Rolland B Johns officer: Chief Accounting Officer 9555 MAROON CIRCLE, ENGLEWOOD CO 80112
Tseli Lily Yang director C/O MEDIVATION, INC., 525 MARKET ST., 36TH FLOOR, SAN FRANCISCO CA 94105
Silvio Tavares director 20 TIPTOE LANE, BURLINGAME CA 94010
Bret C Griess officer: EVP, Operations 9555 MAROON CIRCLE, ENGLEWOOD CO 80112