ACI Worldwide Inc (ACIW)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,444,740 | 3,209,900 | 3,158,740 | 3,386,900 | 3,257,530 |
| Total stockholders’ equity | US$ in thousands | 1,324,300 | 1,193,190 | 1,244,780 | 1,206,600 | 1,129,970 |
| Financial leverage ratio | 2.60 | 2.69 | 2.54 | 2.81 | 2.88 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,444,740K ÷ $1,324,300K
= 2.60
The financial leverage ratio of ACI Worldwide Inc has fluctuated over the past five years, ranging from 2.54 to 2.88. A higher financial leverage ratio indicates that the company relies more on debt financing to support its operations and growth.
In 2023, the financial leverage ratio decreased to 2.60 from 2.69 in 2022, suggesting a slightly lower reliance on debt compared to the previous year. This could be a positive sign as lower leverage ratios typically indicate lower financial risk and a stronger financial position.
However, it is important to note that the company's financial leverage ratio has been relatively high over the years, peaking at 2.88 in 2019. High financial leverage ratios can increase the company's financial risk and volatility, as it indicates a higher proportion of debt in the company's capital structure.
Overall, ACI Worldwide Inc's financial leverage ratio has shown some variability over the years, and it will be essential for the company to carefully manage its debt levels to maintain a healthy financial position and minimize financial risk.
Peer comparison
Dec 31, 2023