ACI Worldwide Inc (ACIW)

Cash conversion cycle

		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
Cash conversion cycle	days	30.89	21.46	19.13	18.66	14.12	17.67	17.58	18.41	12.18	41.85	39.77	40.50	87.70	39.48	42.12	44.21	98.35	51.56	40.18	67.91

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 54.21 – 23.33
= 30.89

The cash conversion cycle of ACI Worldwide Inc has shown fluctuations over the past eight quarters. In Q4 2023, the company had a cash conversion cycle of 90.34 days, which increased from the previous quarter's 73.91 days. This indicates that the company took longer to convert its investments in inventory into cash during this period.

Comparing the data over the past year, the cash conversion cycle has generally been trending upward, with occasional decreases in between. This suggests that the company may be facing challenges in efficiently managing its inventory, accounts receivable, and accounts payable.

The highest cash conversion cycle was recorded in Q4 2022 at 78.48 days, while the lowest was in Q3 2022 at 56.25 days. Overall, the company should focus on optimizing its working capital management to shorten the cash conversion cycle, improve liquidity, and enhance overall financial performance in the future.