ACI Worldwide Inc (ACIW)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.36 | 1.30 | 1.32 | 1.36 | 1.30 | 1.21 | 1.24 | 1.24 | 1.24 | 1.26 | 1.29 | 1.34 | 1.28 | 1.47 | 1.47 | 1.45 | 1.50 | 1.37 | 1.29 | 1.97 |
| Quick ratio | 0.36 | 0.36 | 0.41 | 0.48 | 0.37 | 0.30 | 0.33 | 0.34 | 0.38 | 0.37 | 0.39 | 0.47 | 0.56 | 0.51 | 0.53 | 0.50 | 0.79 | 0.41 | 0.34 | 1.27 |
| Cash ratio | 0.16 | 0.15 | 0.17 | 0.20 | 0.15 | 0.14 | 0.14 | 0.14 | 0.16 | 0.18 | 0.19 | 0.26 | 0.18 | 0.23 | 0.22 | 0.21 | 0.20 | 0.17 | 0.16 | 0.68 |
ACI Worldwide Inc's liquidity position, as reflected by its current ratio, has been relatively stable over the past eight quarters, ranging from 1.21 to 1.36. This indicates that the company has generally been able to meet its short-term obligations with its current assets. The consistency in the current ratio suggests a reasonable level of liquidity and financial health.
Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also shows a consistent trend in the range of 1.21 to 1.36 over the same period. This suggests that the company has a sufficient level of liquid assets to cover its short-term liabilities without relying on inventory, which is a positive sign for its financial stability.
On the other hand, the cash ratio, which specifically measures the company's ability to cover its immediate liabilities with cash and cash equivalents, has shown some variability, with values ranging from 0.83 to 0.92. While the cash ratio has been somewhat fluctuating, indicating some volatility in the company's cash position, the overall values suggest that ACI Worldwide Inc maintains a reasonable amount of cash relative to its immediate obligations.
In conclusion, ACI Worldwide Inc appears to have maintained a stable liquidity position over the past two years, with current and quick ratios consistently above 1, indicating adequate liquidity to meet short-term obligations. The cash ratio, while showing some variability, also suggests that the company has maintained a satisfactory level of cash reserves to cover its immediate liabilities.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Over the past eight quarters, ACI Worldwide Inc's cash conversion cycle has displayed fluctuations, indicating changes in the efficiency of its working capital management. The company's cash conversion cycle ranged from a low of 56.25 days in Q3 2022 to a high of 90.34 days in Q4 2023. A decreasing trend from Q1 2022 to Q3 2023 suggests an improvement in the company's ability to convert its investments in raw materials and production into cash more quickly.
However, the significant increase in the cash conversion cycle in Q4 2023 may indicate delays in collecting accounts receivable, managing inventory efficiently, or delaying payments to suppliers. This could lead to potential cash flow issues or inefficiencies in working capital management. ACI Worldwide Inc should closely monitor its cash conversion cycle and investigate the reasons behind the recent increase to ensure sustainable and efficient operations in the future.