ACI Worldwide Inc (ACIW)
Working capital 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 |
| Total current assets | US$ in thousands | 1,406,640 | 1,114,800 | 937,434 | 1,154,910 | 920,376 |
| Total current liabilities | US$ in thousands | 1,037,250 | 858,842 | 754,155 | 905,605 | 611,950 |
| Working capital turnover | 3.76 | 11.10 | 14.77 | 10.20 | 7.99 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,388,310K ÷ ($1,406,640K – $1,037,250K)
= 3.76
The working capital turnover ratio for ACI Worldwide Inc has shown fluctuations over the past five years. The ratio was 3.93 in 2023, which indicates that the company generated $3.93 in net sales revenue for every dollar of working capital invested. This represents a decrease from the previous year, where the ratio was 5.56, suggesting a less efficient utilization of working capital.
In 2021, the working capital turnover ratio was at its highest level of 7.48, indicating a significant improvement in efficiency compared to the prior years. This suggests that the company was able to generate more sales revenue relative to its working capital investment, reflecting a strong operational performance in managing its working capital.
However, in 2020 and 2019, the working capital turnover ratio declined to 5.19 and 4.08, respectively, indicating a decrease in efficiency in utilizing working capital to generate sales revenue during those years.
Overall, the trend in ACI Worldwide Inc's working capital turnover ratio shows variability over the years, with fluctuations in efficiency in converting working capital into sales revenue. It is essential for the company to closely monitor and manage its working capital effectively to sustain and improve its operational efficiency in the future.
Peer comparison
Dec 31, 2023