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.
Peer comparison
Dec 31, 2023