ACI Worldwide Inc (ACIW)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	121,509	89,121	74,327	94,379	142,177	161,420	152,067	145,226	127,791	85,466	87,568	95,142	72,660	61,000	76,948	68,598	67,062	99,266	82,685	62,386
Total stockholders’ equity	US$ in thousands	1,324,300	1,211,040	1,172,530	1,167,630	1,193,190	1,198,220	1,208,360	1,224,670	1,244,780	1,195,550	1,178,560	1,197,720	1,206,600	1,122,840	1,090,740	1,067,800	1,129,970	1,058,940	1,052,580	1,032,580
ROE		9.18%	7.36%	6.34%	8.08%	11.92%	13.47%	12.58%	11.86%	10.27%	7.15%	7.43%	7.94%	6.02%	5.43%	7.05%	6.42%	5.93%	9.37%	7.86%	6.04%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $121,509K ÷ $1,324,300K
= 9.18%

The return on equity (ROE) of ACI Worldwide Inc has shown a declining trend over the past eight quarters. In Q4 2023, the ROE stood at 9.18%, which is lower compared to the previous quarter's 7.36%. This decline indicates that the company's ability to generate profit from shareholder equity has weakened.

Looking at the trend over the past year, the ROE has consistently decreased from 13.47% in Q3 2022 to 9.18% in Q4 2023. This downward trajectory suggests a decline in the company's profitability relative to its equity base.

While the ROE levels are still positive, the decreasing trend may raise concerns regarding the company's operational efficiency and/or management of assets and liabilities. It is important for ACI Worldwide Inc to closely monitor and address the factors contributing to the decline in ROE to ensure sustainable and profitable growth in the future.