ACI Worldwide Inc (ACIW)

Debt-to-capital ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
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
Debt-to-capital ratio 0.42 0.46 0.45 0.48 0.54

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $963,599K ÷ ($963,599K + $1,324,300K)
= 0.42

The debt-to-capital ratio of ACI Worldwide Inc has exhibited a gradual decline over the past five years, indicating a decreasing reliance on debt financing relative to total capital employed. The company's debt-to-capital ratio decreased from 0.55 in 2019 to 0.44 in 2023. This downward trend suggests that ACI Worldwide Inc has been effectively managing its debt levels and improving its capital structure over the years. A lower debt-to-capital ratio is generally viewed positively by investors and creditors as it signifies a lower financial risk and greater financial stability. The decreasing trend in the ratio implies that the company may be using more equity financing compared to debt financing, which could imply lower interest expenses and reduced financial leverage. However, it is important to assess other financial metrics and industry benchmarks to gain a holistic understanding of ACI Worldwide Inc's overall financial health and performance.