ACI Worldwide Inc (ACIW)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
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
Current ratio		1.36	1.30	1.24	1.28	1.50

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,406,640K ÷ $1,037,250K
= 1.36

The current ratio of ACI Worldwide Inc has been fluctuating over the past five years. The current ratio measures the company's ability to pay its short-term obligations using its short-term assets. A higher current ratio indicates that the company has more current assets relative to its current liabilities, which implies better liquidity and financial health.

In 2023, the current ratio of ACI Worldwide Inc improved to 1.36 from 1.30 in 2022. This increase suggests that the company had more current assets available to cover its short-term liabilities compared to the prior year, which may indicate improved liquidity. However, it is important to note that the current ratio of 1.36 is still below the ideal benchmark of 2:1, which is considered a standard measure for good liquidity.

Looking back at the trend over the past five years, we see some variations in the company's current ratio. The ratios ranged from a high of 1.50 in 2019 to a low of 1.24 in 2021. Despite these fluctuations, the company has generally maintained a current ratio above 1, indicating that it has been able to meet its short-term obligations with its current assets.

Overall, while the current ratio of ACI Worldwide Inc has shown some variability over the years, the recent improvement in 2023 suggests a strengthening liquidity position. However, investors and analysts should continue to monitor this ratio and other liquidity metrics to assess the company's ability to meet its short-term financial obligations effectively.