ACI Worldwide Inc (ACIW)

Working capital turnover

		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
Revenue (ttm)	US$ in thousands	1,388,308	2,788,703	2,737,283	2,762,101	2,803,157	2,771,567	2,784,857	2,746,439	2,707,659	1,253,031	1,260,374	1,267,010	1,281,930	1,289,089	1,328,107	1,325,815	1,240,185	1,178,324	1,068,948	1,006,325
Total current assets	US$ in thousands	1,406,640	1,226,710	1,028,500	954,036	1,114,800	1,210,960	1,045,800	1,009,730	937,434	1,011,540	985,230	956,252	1,154,910	870,331	852,407	806,446	920,376	1,004,890	1,121,980	514,217
Total current liabilities	US$ in thousands	1,037,250	945,630	781,866	700,910	858,842	997,974	845,002	813,612	754,155	803,485	766,459	716,119	905,605	590,182	580,459	556,356	611,950	734,880	870,249	260,377
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

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,388,308K ÷ ($1,406,640K – $1,037,250K)
= 3.76

ACI Worldwide Inc's working capital turnover ratio has been fluctuating over the past eight quarters. The company's working capital turnover has decreased from 5.56 in Q4 2022 to 3.93 in Q4 2023. This may indicate a potential liquidity issue or inefficiency in managing its working capital. However, it's important to note that working capital turnover is influenced by both current assets and current liabilities, so a deeper analysis of these components is necessary to fully understand the trend.

Despite the recent decrease in the working capital turnover ratio, it is still above 1, indicating that the company is effectively utilizing its working capital to generate sales. The decreasing trend in the ratio could be due to changes in the company's business operations, sales strategies, or overall market conditions.

Further analysis of ACI Worldwide Inc's working capital components, such as accounts receivable, inventory, and accounts payable, would provide more insights into the efficiency of the company's working capital management. It's important for stakeholders to monitor these trends to ensure that the company is effectively managing its liquidity and optimizing its operations.