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CSGS (CSG Systems International) Degree of Operating Leverage : 6.50 (As of Dec. 2024)


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What is CSG Systems International Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. CSG Systems International's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 6.50. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for CSG Systems International's Degree of Operating Leverage or its related term are showing as below:

CSGS's Degree of Operating Leverage is ranked worse than
82.79% of 2667 companies
in the Software industry
Industry Median: 0.81 vs CSGS: 6.50

CSG Systems International Degree of Operating Leverage Historical Data

The historical data trend for CSG Systems International's Degree of Operating Leverage 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 Degree of Operating Leverage Chart

CSG Systems International Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 28.23 2.51 -8.43 8.22 6.50

CSG Systems International Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Degree of Operating Leverage Get a 7-Day Free Trial 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 8.22 4.83 0.43 -7.51 6.50

Competitive Comparison of CSG Systems International's Degree of Operating Leverage

For the Software - Infrastructure subindustry, CSG Systems International's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage 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's Degree of Operating Leverage Distribution in the Software Industry

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

* The bar in red indicates where CSG Systems International's Degree of Operating Leverage falls into.


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CSG Systems International Degree of Operating Leverage Calculation

CSG Systems International's Degree of Operating Leverage for the quarter that ended in Dec. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 142.741 (Dec. 2024) / 123.527 (Dec. 2023) - 1 )/( 1197.248 (Dec. 2024) / 1169.258 (Dec. 2023) - 1 )
=0.1555/0.0239
=6.50***

* 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.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


CSG Systems International  (NAS:CSGS) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


CSG Systems International Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of CSG Systems International's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


CSG Systems International Business Description

Traded in Other Exchanges
Address
169 Inverness Drive West, Suite 300, Englewood, CO, USA, 80112
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 the United States.
Executives
Ronald Cooper director 1700 EAST TUFTS AVE., ENGLEWOOD CO 80113
Hai Tran officer: EVP & CFO C/O SOC TELEMED, INC., 1768 BUSINESS CENTER DRIVE, SUITE 100, RESTON VA 20190
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
Rasmani Bhattacharya officer: SVP, General Counsel 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
David Neil Schaaf officer: SVP, Chief Accounting Officer 6175 SOUTH WILLOW DRIVE, GREENWOOD VILLAGE CO 80111
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