ACI Worldwide Inc (ACIW)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,424,330 | 1,324,300 | 1,193,190 | 1,244,780 | 1,206,600 |
| ROE | 14.26% | 9.18% | 11.92% | 10.27% | 6.02% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $203,118K ÷ $1,424,330K
= 14.26%
ACI Worldwide Inc's return on equity (ROE) has shown a positive trend over the past five years based on the provided data. The ROE increased from 6.02% as of December 31, 2020, to 14.26% as of December 31, 2024. This indicates that the company has been effectively utilizing shareholders' equity to generate profits.
The improvement in ROE signifies that ACI Worldwide Inc has been able to generate higher returns on the equity invested by shareholders. It suggests efficient management of assets and liabilities to enhance profitability.
However, it is worth noting that there was a slight decrease in ROE from 11.92% as of December 31, 2022, to 9.18% as of December 31, 2023. This dip could be a result of changes in the company's financial structure, profitability, or other factors affecting the financial performance.
Overall, the increasing trend in ROE for ACI Worldwide Inc demonstrates the company's ability to generate better returns for its shareholders over the years, reflecting positively on its financial health and operational efficiency.
Peer comparison
Dec 31, 2024