ACI Worldwide Inc (ACIW)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,388,310	2,841,610	2,707,660	2,543,780	2,465,550
Receivables	US$ in thousands	206,209	188,949	160,787	342,879	359,197
Receivables turnover		6.73	15.04	16.84	7.42	6.86

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $1,388,310K ÷ $206,209K
= 6.73

The receivables turnover ratio of ACI Worldwide Inc has shown a declining trend over the past five years. In 2021, the ratio was at its highest of 4.28, indicating that the company collected its accounts receivable approximately 4.28 times during the year. However, in the subsequent years, the ratio decreased to 3.77 in 2020, 3.52 in 2022, and 3.21 in 2023.

A decreasing trend in the receivables turnover ratio may suggest that ACI Worldwide Inc is taking longer to collect payments from its customers, which could potentially signal issues with its credit policies, collection efforts, or the creditworthiness of customers. It's important for the company to closely monitor and improve its accounts receivable management to ensure timely collections and maintain healthy cash flows.