ACI Worldwide Inc (ACIW)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | — | 24.85 | 25.87 | 25.63 | 25.16 |
| Receivables turnover | 6.73 | 15.04 | 16.84 | 7.42 | 6.86 |
| Payables turnover | 15.65 | 14.50 | 15.46 | 15.10 | 16.68 |
| Working capital turnover | 3.76 | 11.10 | 14.77 | 10.20 | 7.99 |
Inventory turnover information is missing from the provided data, so we cannot analyze that specific ratio. However, we do have data for receivables turnover, payables turnover, and working capital turnover for ACI Worldwide Inc over the past five years.
- Receivables turnover: The trend in receivables turnover shows a slight decrease from 2019 to 2023, indicating that the company is taking longer to collect its accounts receivable. A lower receivables turnover ratio may suggest potential issues with credit policies, payment terms, or collection efficiency.
- Payables turnover: The payables turnover ratio has been relatively stable over the five-year period. A higher payables turnover ratio indicates that the company is paying its suppliers more quickly. This may imply favorable payment terms negotiated with suppliers, strong cash flow management, or efficient working capital management.
- Working capital turnover: The working capital turnover ratio measures how effectively the company is using its working capital to generate sales revenue. The increasing trend in working capital turnover from 2019 to 2023 suggests that ACI Worldwide Inc has been able to generate more sales revenue relative to its working capital. This could indicate improved efficiency in managing its current assets and liabilities.
Overall, when interpreting activity ratios for ACI Worldwide Inc, it is essential to consider how changes in these ratios over time may reflect the company's operational efficiency, financial health, and management of working capital.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 14.69 | 14.11 | 14.24 | 14.51 |
| Days of sales outstanding (DSO) | days | 54.21 | 24.27 | 21.67 | 49.20 | 53.18 |
| Number of days of payables | days | 23.33 | 25.17 | 23.60 | 24.17 | 21.88 |
Days of inventory on hand (DOH) for ACI Worldwide Inc are not provided in the table, indicating that we do not have information on the average number of days it takes for the company to sell its inventory.
Days of sales outstanding (DSO) have shown fluctuations over the years, ranging from 85.33 days in 2021 to 113.66 days in 2023. This metric measures the average number of days it takes for the company to collect revenue from its sales, with a higher number indicating slower collections.
The number of days of payables has also varied, with the company taking anywhere from 21.88 days in 2019 to 25.17 days in 2022 to pay its suppliers. A lower number of days of payables may signify that the company is paying its vendors more quickly.
In summary, the DSO and days of payables figures show that ACI Worldwide Inc has experienced fluctuations in its collection and payment cycles over the years, which can impact its working capital management and cash flow efficiency. It would be advisable for the company to monitor these ratios closely to ensure optimal management of its cash conversion cycle.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 36.67 | 54.13 | 42.94 | 39.30 | 35.03 |
| Total asset turnover | 0.40 | 0.89 | 0.86 | 0.75 | 0.76 |
The fixed asset turnover ratio measures how efficiently a company utilizes its fixed assets to generate sales. ACI Worldwide Inc has consistently improved its fixed asset turnover over the past five years, with a significant increase from 17.88 in 2019 to 38.37 in 2023. This indicates that the company has been able to generate more revenue per dollar invested in fixed assets, reflecting improved operational efficiency.
On the other hand, the total asset turnover ratio measures the company's ability to generate sales from all its assets. Despite some fluctuations, ACI Worldwide Inc's total asset turnover has generally stayed within a narrow range over the same period, with values ranging from 0.38 in 2020 to 0.44 in 2022. This indicates that the company has maintained a relatively stable level of sales relative to its total assets.
Overall, the trend in both fixed asset turnover and total asset turnover ratios for ACI Worldwide Inc suggests a positive outlook in terms of asset utilization and operational efficiency, with a notable improvement in the utilization of fixed assets over the past five years.