ACI Worldwide Inc (ACIW)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | 24.85 | 25.87 | 25.63 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 4.11 | 3.93 | 5.56 | 7.48 | 5.19 |
ACI Worldwide Inc's inventory turnover has remained relatively stable over the years, ranging from 24.85 to 25.87. This indicates that the company efficiently manages its inventory by quickly selling and replacing its goods.
The receivables turnover ratio is not available for any of the years provided, suggesting that there is not enough information to assess how quickly the company collects its accounts receivable.
Similarly, the payables turnover ratio is not provided for any year, implying that there is no data available to evaluate how effectively the company pays its suppliers.
In terms of working capital turnover, ACI Worldwide Inc's performance has shown some fluctuations. The ratio was highest in 2021 at 7.48 but decreased to 3.93 in 2023 before slightly improving to 4.11 in 2024. This implies that the company's ability to generate sales from its working capital has varied over the years, with a notable decline in 2023. Overall, further examination of the company's working capital management practices may be warranted to better understand its efficiency in utilizing its capital for generating revenue.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 14.69 | 14.11 | 14.24 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
The activity ratios of ACI Worldwide Inc indicate that the company manages its inventory efficiently, with a consistent range of days of inventory on hand (DOH) averaging around 14 days over the years provided in the data. This suggests that ACI is able to quickly convert its inventory into sales.
On the other hand, the days of sales outstanding (DSO) and number of days of payables data is not available for the years indicated. Without this information, it is challenging to assess the company's ability to collect receivables from customers and pay off its payables in a timely manner.
Overall, based on the available data, ACI Worldwide Inc appears to maintain effective inventory management practices, but more information is needed to fully evaluate its operational efficiency in terms of accounts receivable collection and accounts payable management.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 27.08 | 21.74 | 19.99 |
| Total asset turnover | 0.53 | 0.42 | 0.44 | 0.43 | 0.38 |
ACI Worldwide Inc's long-term activity ratios, specifically the Fixed Asset Turnover and Total Asset Turnover, indicate the efficiency of the company in utilizing its assets to generate revenue.
1. Fixed Asset Turnover:
- The Fixed Asset Turnover ratio measures how efficiently a company generates revenue from its fixed assets.
- From 2020 to 2024, ACI Worldwide Inc's Fixed Asset Turnover improved steadily, starting at 19.99 in 2020 and reaching 27.08 in 2022.
- The significant increase in Fixed Asset Turnover signifies that ACI Worldwide Inc has been able to generate more revenue from its fixed assets over the years.
2. Total Asset Turnover:
- The Total Asset Turnover ratio indicates how efficiently a company utilizes all its assets to generate sales.
- ACI Worldwide Inc's Total Asset Turnover also showed an increasing trend from 0.38 in 2020 to 0.53 in 2024.
- The rise in Total Asset Turnover suggests that ACI Worldwide Inc has been able to generate more revenue relative to its total assets, which is a positive indicator of the company's operational efficiency.
In summary, the increasing trends in both Fixed Asset Turnover and Total Asset Turnover ratios for ACI Worldwide Inc reflect the company's ability to utilize its assets effectively to generate revenue and might indicate improved operational efficiency and productivity over the analyzed period.