ACI Worldwide Inc (ACIW)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 226,113 | 259,828 | 220,125 | 155,256 | 136,243 |
| Long-term debt | US$ in thousands | 963,599 | 1,024,350 | 1,019,870 | 1,120,740 | 1,339,010 |
| Total stockholders’ equity | US$ in thousands | 1,324,300 | 1,193,190 | 1,244,780 | 1,206,600 | 1,129,970 |
| Return on total capital | 9.88% | 11.72% | 9.72% | 6.67% | 5.52% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $226,113K ÷ ($963,599K + $1,324,300K)
= 9.88%
The return on total capital for ACI Worldwide Inc has shown a generally positive trend over the past five years, increasing from 4.94% in 2019 to 9.33% in 2023. This indicates the company's ability to generate profits relative to the total capital employed in its operations has been improving. The upward trajectory in return on total capital suggests that the company has been effectively utilizing its total capital to generate returns for its stakeholders. Overall, the increasing trend in return on total capital reflects positively on ACI Worldwide Inc's operational efficiency and financial performance over the years.
Peer comparison
Dec 31, 2023