ACI Worldwide Inc (ACIW)

The current ratio, which measures ACI Worldwide Inc's ability to cover its short-term liabilities with its short-term assets, shows a generally stable trend over the last few years. Starting at 1.45 in March 2020, the ratio increased to a peak of 1.64 in December 2024, indicating that the company's short-term liquidity position improved over this period. However, there was a slight decline in the current ratio from March 2024 to September 2024, although it picked up significantly by the end of 2024.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, fluctuated quite a bit during the period. It began at a low of 0.21 in March 2020, showing some improvement before dropping to -0.09 in March 2024, which is an anomaly that may warrant further investigation. However, the quick ratio recovered to 0.36 by December 2024, indicating a better ability to meet short-term obligations without relying on inventory.

The cash ratio, which represents the most stringent test of liquidity by only considering cash and cash equivalents, showed a similar pattern to the quick ratio. It was relatively stable initially but dipped into negative territory in March 2024 before bouncing back to 0.36 by December 2024, suggesting an improvement in ACI Worldwide Inc's ability to cover its short-term liabilities with cash on hand.

Overall, while the company's current ratio remained relatively consistent and even improved slightly over the years, there was more volatility in the quick ratio and cash ratio. Instances of sharp fluctuations, such as the negative quick ratio in March 2024, may indicate areas that require closer attention to ensure the company's liquidity position remains sound.

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Additional liquidity measure

The cash conversion cycle of ACI Worldwide Inc has fluctuated over the period from March 31, 2020, to December 31, 2024. Initially standing at 17.50 days in March 2020, the cycle decreased to 14.11 days by December 2021, indicating an improvement in the company's efficiency in converting its investments in inventory and other resources into cash.

However, there was a sudden decrease to 0.00 days in December 2023 and further to 0.00 days in June and September 2024, which may be attributed to changes in the company's operating cycle or reporting practices. These zero value days suggest that ACI Worldwide Inc managed to operate without any working capital tied up in the cash conversion cycle during these specific periods.

It is essential for the company to maintain a healthy cash conversion cycle to ensure optimal working capital management and liquidity. Further analysis and understanding of the underlying factors causing these fluctuations in the cash conversion cycle would be necessary to gauge the company's overall operational efficiency in managing its cash flows.