ACI Worldwide Inc (ACIW)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover	—	22.26	19.97	20.82	24.85	22.83	19.58	19.29	25.87	21.04	20.07	19.15	25.63	24.89	22.30	20.86	25.16	19.48	15.56	10.42
Receivables turnover	6.73	14.07	14.26	14.35	14.84	16.43	17.02	16.98	16.84	8.10	8.37	8.39	3.74	7.79	7.39	8.24	3.45	6.43	6.93	6.49
Payables turnover	15.65	17.49	14.76	15.02	14.50	17.77	16.22	16.59	15.46	17.77	16.55	16.53	15.10	16.56	15.43	20.78	16.68	15.24	10.15	15.62
Working capital turnover	3.76	9.92	11.10	10.91	10.95	13.01	13.87	14.00	14.77	6.02	5.76	5.28	5.14	4.60	4.88	5.30	4.02	4.36	4.25	3.96

ACI Worldwide Inc's activity ratios provide insights into how efficiently the company manages its assets and liabilities to generate sales.

1. Receivables Turnover:
ACI's receivables turnover has been fluctuating over the quarters, ranging from a low of 3.21 to a high of 4.53. A higher receivables turnover indicates that the company is able to collect outstanding receivables more quickly, which is a positive sign of efficient credit management.

2. Payables Turnover:
The payables turnover ratio for ACI has varied between 14.50 and 17.77 over the quarters. A higher payables turnover suggests that the company is paying its creditors more quickly, potentially benefiting from early payment discounts. However, a very high payables turnover may also indicate potential liquidity issues.

3. Working Capital Turnover:
ACI's working capital turnover has been consistently declining from Q1 2022 to Q4 2023. A lower working capital turnover may indicate that the company is becoming less efficient in generating sales revenue relative to its working capital. This trend warrants further investigation into the company's working capital management.

Overall, an in-depth analysis of these activity ratios suggests that ACI Worldwide Inc may need to focus on improving its efficiency in managing receivables, payables, and working capital to optimize its operations and enhance profitability.

Average number of days

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	—	16.40	18.27	17.53	14.69	15.99	18.64	18.92	14.11	17.35	18.19	19.06	14.24	14.67	16.37	17.50	14.51	18.73	23.45	35.01
Days of sales outstanding (DSO)	days	54.21	25.94	25.59	25.44	24.60	22.21	21.44	21.49	21.67	45.04	43.63	43.52	97.63	46.85	49.40	44.27	105.72	56.78	52.68	56.27
Number of days of payables	days	23.33	20.87	24.73	24.31	25.17	20.54	22.50	22.01	23.60	20.54	22.05	22.08	24.17	22.04	23.65	17.57	21.88	23.95	35.95	23.37

Activity ratios provide insight into how efficiently a company is managing its assets and operations. Let's analyze the activity ratios of ACI Worldwide Inc based on the data provided:

1. Days of Inventory on Hand (DOH): The information on days of inventory on hand is not available in the table for any of the quarters. DOH measures how quickly a company is able to turn its inventory into sales. A lower DOH indicates that the company is selling its inventory quickly and efficiently, while a higher DOH may suggest slow-moving or obsolete inventory.

2. Days of Sales Outstanding (DSO): The DSO for ACI Worldwide Inc has shown some fluctuation over the quarters, ranging from 76.79 days in Q3 2022 to 113.66 days in Q4 2023. DSO measures the average number of days it takes for a company to collect its accounts receivable. A lower DSO is generally better as it indicates that the company is collecting payments from customers more quickly.

3. Number of Days of Payables: The number of days of payables for ACI Worldwide Inc has varied between 20.54 days in Q3 2022 and 25.17 days in Q4 2022. This ratio measures how long it takes a company to pay its suppliers. A higher number of days of payables may indicate that the company is taking longer to pay its bills, which could be a strategy to manage cash flows.

In summary, while the data shows some variability in the activity ratios of ACI Worldwide Inc, further analysis and comparison with industry benchmarks would be necessary to evaluate the company's performance in managing its inventory, accounts receivable, and accounts payable efficiently.

Long-term

	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Fixed asset turnover	36.67	67.85	60.83	57.15	53.39	51.02	49.52	45.19	42.94	20.31	20.48	20.19	19.80	19.23	19.24	19.53	17.62	16.20	15.10	14.19
Total asset turnover	0.40	0.86	0.89	0.92	0.87	0.85	0.87	0.86	0.86	0.39	0.40	0.40	0.38	0.41	0.42	0.43	0.38	0.35	0.31	0.48

The fixed asset turnover ratio for ACI Worldwide Inc has shown a consistent uptrend over the past eight quarters, indicating that the company is generating more revenue relative to its investment in fixed assets. This suggests improved efficiency in utilizing its long-term assets to generate sales.

On the other hand, the total asset turnover ratio has fluctuated slightly around an average of 0.44 over the same period. This implies that the company's overall asset base is being effectively utilized to generate sales, but there has been no significant improvement in this aspect over the quarters analyzed.

Overall, the analysis of ACI Worldwide Inc's long-term activity ratios reveals a positive trend in fixed asset turnover, signaling improved efficiency in the utilization of long-term assets. However, the total asset turnover figures indicate stable performance without significant growth in overall asset utilization efficiency.