ACI Worldwide Inc (ACIW)

Return on assets (ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 203,118 121,509 142,177 127,791 72,660
Total assets US$ in thousands 3,025,290 3,444,740 3,209,900 3,158,740 3,386,900
ROA 6.71% 3.53% 4.43% 4.05% 2.15%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $203,118K ÷ $3,025,290K
= 6.71%

ACI Worldwide Inc's return on assets (ROA) has shown a positive trend over the past five years. The ROA increased from 2.15% as of December 31, 2020, to 6.71% as of December 31, 2024. This indicates that the company has been effectively generating earnings in relation to its assets. The steady improvement in ROA suggests that ACI Worldwide has been efficiently utilizing its assets to generate profits, reflecting strong operational performance and effective management of resources. However, there was a slight dip in ROA in 2023 compared to the previous year, which warrants further investigation into factors influencing the decrease. Overall, the increasing trend in ROA is a positive signal for investors and stakeholders, demonstrating the company's ability to generate returns from its asset base.