ACI Worldwide Inc (ACIW)

Financial leverage ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	3,444,740	3,254,830	3,068,890	3,006,800	3,209,900	3,263,140	3,218,670	3,210,440	3,158,740	3,184,490	3,175,180	3,160,200	3,386,900	3,132,430	3,137,580	3,109,900	3,257,530	3,340,760	3,450,320	2,114,140
Total stockholders’ equity	US$ in thousands	1,324,300	1,211,040	1,172,530	1,167,630	1,193,190	1,198,220	1,208,360	1,224,670	1,244,780	1,195,550	1,178,560	1,197,720	1,206,600	1,122,840	1,090,740	1,067,800	1,129,970	1,058,940	1,052,580	1,032,580
Financial leverage ratio		2.60	2.69	2.62	2.58	2.69	2.72	2.66	2.62	2.54	2.66	2.69	2.64	2.81	2.79	2.88	2.91	2.88	3.15	3.28	2.05

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 shown a relatively stable trend over the past eight quarters, ranging between 2.58 to 2.72. The ratio indicates that the company's capital structure is tilted more towards debt financing rather than equity.

A financial leverage ratio of 2.60 to 2.69 signifies that for each dollar of equity, ACI Worldwide Inc has around $2.60 to $2.69 in debt. This suggests a moderate level of leverage, which could potentially amplify returns on equity when the company is performing well. However, it also increases financial risk, especially during economic downturns or periods of financial instability.

The consistency in the financial leverage ratio over the quarters implies that the company has been maintaining a relatively stable debt-to-equity mix in its capital structure. Investors and creditors typically monitor this ratio to assess the company's financial risk and ability to meet its debt obligations.

In conclusion, while the financial leverage ratio of ACI Worldwide Inc reflects a moderate level of leverage, the stability in the ratio suggests a disciplined approach to managing the company's debt levels. Investors should continue to monitor this ratio alongside other financial metrics to assess the overall financial health and risk profile of the company.