ACI Worldwide Inc (ACIW)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	719,211	696,071	638,871	622,459	617,453
Payables	US$ in thousands	45,964	47,997	41,312	41,223	37,010
Payables turnover		15.65	14.50	15.46	15.10	16.68

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $719,211K ÷ $45,964K
= 15.65

The payables turnover ratio measures how efficiently ACI Worldwide Inc is managing its accounts payable. A higher ratio indicates that the company is taking fewer days to pay its suppliers, which can be a sign of strong liquidity and good supplier relationships.

Looking at the trend over the past five years, we can see that ACI's payables turnover has fluctuated but generally remained at a relatively high level, indicating efficient management of payables. Despite some fluctuations, the company has consistently maintained a payables turnover above 14, reflecting its ability to effectively utilize its accounts payable to support operations without sacrificing liquidity.

The decrease in payables turnover from 2022 to 2023 could suggest that the company took slightly longer to pay its suppliers in 2023 compared to the previous year. However, it is important to analyze this in conjunction with other financial metrics to assess the overall financial health and efficiency of ACI Worldwide Inc.