ACI Worldwide Inc (ACIW)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.12 | 2.60 | 2.69 | 2.54 | 2.81 |
ACI Worldwide Inc's solvency ratios indicate a strong financial position with minimal reliance on debt. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have consistently been at 0.00 over the five-year period from 2020 to 2024, suggesting the company has very little debt compared to its assets and capital structure. This signifies that ACI Worldwide Inc is not heavily leveraged and has a healthy balance sheet.
Additionally, the Financial leverage ratio has shown a decreasing trend from 2.81 in 2020 to 2.12 in 2024. This ratio measures the extent to which the company has used debt to finance its operations compared to equity. The decreasing trend indicates a reduction in financial risk and a more stable capital structure over the years.
Overall, the solvency ratios of ACI Worldwide Inc point towards a stable and financially secure company with a low level of debt relative to its assets and equity. This suggests that the company has strong financial health and is well-positioned to meet its obligations and sustain its operations in the long term.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 4.46 | 2.88 | 4.88 | 4.89 | 2.74 |
Based on the interest coverage ratios provided for ACI Worldwide Inc over the past five years, we observe fluctuations in the company's ability to cover its interest expenses with its operating income.
In December 2020, the interest coverage ratio stood at 2.74, indicating that the company generated operating income 2.74 times greater than its interest expenses. This level suggests a moderate ability to meet interest obligations.
By December 2021, the interest coverage ratio increased to 4.89, reflecting an improvement in the company's ability to cover interest expenses. This could signal better financial health and a reduced risk of default on debt obligations.
The trend continued in December 2022 and 2024, with interest coverage ratios of 4.88 and 4.46, respectively. These figures suggest a consistent ability to comfortably cover interest payments.
However, in December 2023, the interest coverage ratio dropped to 2.88, indicating a slight deterioration in the company's ability to cover interest expenses compared to the previous years.
Overall, the analysis of ACI Worldwide Inc's interest coverage ratios suggests that the company has generally maintained a sufficient level of operating income to cover its interest obligations, with slight fluctuations in performance over the five-year period. Continued monitoring of this ratio is advisable to assess the company's financial stability and ability to service its debt.