ACI Worldwide Inc (ACIW)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,025,290 | 3,444,740 | 3,209,900 | 3,158,740 | 3,386,900 |
| Total stockholders’ equity | US$ in thousands | 1,424,330 | 1,324,300 | 1,193,190 | 1,244,780 | 1,206,600 |
| Financial leverage ratio | 2.12 | 2.60 | 2.69 | 2.54 | 2.81 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,025,290K ÷ $1,424,330K
= 2.12
The financial leverage ratio of ACI Worldwide Inc has exhibited fluctuations over the years, with a decreasing trend from 2.81 in 2020 to 2.12 in 2024. This ratio indicates that the company's assets are financed primarily through debt rather than equity. A higher financial leverage ratio implies higher financial risk due to increased reliance on debt financing, which may lead to higher interest expenses and a greater sensitivity to economic downturns. Conversely, a lower financial leverage ratio suggests a more conservative capital structure with lower risk but potentially lower returns. Monitoring this ratio is crucial for assessing the company's ability to meet its debt obligations and manage financial risk effectively.
Peer comparison
Dec 31, 2024