ACI Worldwide Inc (ACIW)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 322,880 | 226,113 | 259,828 | 220,125 | 155,256 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,424,330 | 1,324,300 | 1,193,190 | 1,244,780 | 1,206,600 |
| Return on total capital | 22.67% | 17.07% | 21.78% | 17.68% | 12.87% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $322,880K ÷ ($—K + $1,424,330K)
= 22.67%
ACI Worldwide Inc's return on total capital has shown a positive trend over the past five years, starting at 12.87% in 2020 and steadily increasing to 22.67% by the end of 2024. This indicates that the company has been effectively utilizing its total capital to generate profits for its shareholders. The significant improvement in return on total capital from 2020 to 2024 suggests that ACI Worldwide has been enhancing its operational efficiency and/or profitability over this period. This positive trend in return on total capital reflects the company's ability to create value from both its equity and debt sources, demonstrating strong financial management and performance.
Peer comparison
Dec 31, 2024