ACI Worldwide Inc (ACIW)

ACI Worldwide Inc's current ratio has been fluctuating over the past five years, from 1.28 in 2020 to 1.64 in 2024. This indicates the company's ability to meet its short-term obligations with its current assets has improved over the years.

The quick ratio, which takes into account the most liquid current assets, has shown a declining trend from 0.18 in 2020 to 0.36 in 2024. This suggests that the company may have difficulties meeting its short-term obligations without relying on inventory.

Similarly, the cash ratio, which is the most stringent liquidity measure as it only considers cash and cash equivalents, has also fluctuated over the years from 0.18 in 2020 to 0.36 in 2024. This shows an improvement in the company's ability to cover its short-term liabilities with cash.

Overall, the company's liquidity position, as indicated by these ratios, has shown some variability over the years with improvements in some areas and potential challenges in others. Investors and stakeholders should continue to monitor these ratios to assess the company's ability to meet its short-term obligations effectively.

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Additional liquidity measure

The cash conversion cycle of ACI Worldwide Inc has shown stability over the past few years, hovering around the range of 14 days. In 2020, the cycle was 14.24 days, which decreased slightly to 14.11 days by the end of 2021. However, there was a slight increase in the cycle to 14.69 days in 2022. Interestingly, there was a significant improvement in the cycle for the years 2023 and 2024, where the cycle reached 0.00 days, indicating that the company was able to efficiently convert its cash into inventory, sell its products, and receive payments in a shorter timeframe. This rapid conversion cycle in the later years suggests improved liquidity and operating efficiency within the company.