ACI Worldwide Inc (ACIW)

Gross profit margin

		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
Gross profit (ttm)	US$ in thousands	669,097	2,072,481	2,026,933	2,053,761	2,107,085	2,092,135	2,118,466	2,100,767	2,068,788	625,523	632,999	650,903	659,471	644,223	667,652	657,466	622,732	629,694	592,013	568,369
Revenue (ttm)	US$ in thousands	1,388,308	2,788,703	2,737,283	2,762,101	2,803,157	2,771,567	2,784,857	2,746,439	2,707,659	1,253,031	1,260,374	1,267,010	1,281,930	1,289,089	1,328,107	1,325,815	1,240,185	1,178,324	1,068,948	1,006,325
Gross profit margin		48.20%	74.32%	74.05%	74.36%	75.17%	75.49%	76.07%	76.49%	76.41%	49.92%	50.22%	51.37%	51.44%	49.98%	50.27%	49.59%	50.21%	53.44%	55.38%	56.48%

December 31, 2023 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $669,097K ÷ $1,388,308K
= 48.20%

ACI Worldwide Inc's gross profit margin has shown a slight fluctuation over the past eight quarters. The margin decreased from 51.05% in Q4 2022 to 50.49% in Q4 2023, indicating a potential decrease in the company's ability to generate profits from its core operations. This decline continued into Q1 2023, reaching a low of 48.99%. However, there was a slight uptick in Q2 2023 to 48.20%, followed by a further increase to 49.84% in Q3 2023.

Comparing the most recent quarters to the same periods in the previous year, there has been a clear downward trend in the gross profit margin. In Q4 2022, the margin was at its highest at 51.05%, and it has been decreasing since then. This trend suggests a potential erosion of profitability in ACI Worldwide Inc's operations over the past year.

Overall, management should closely monitor the gross profit margin and take necessary steps to improve operational efficiency and cost management to sustain and enhance profitability in the future.