ACI Worldwide Inc (ACIW)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 322,880 | 226,113 | 259,828 | 220,125 | 155,256 |
| Interest expense | US$ in thousands | 72,471 | 78,486 | 53,193 | 45,060 | 56,630 |
| Interest coverage | 4.46 | 2.88 | 4.88 | 4.89 | 2.74 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $322,880K ÷ $72,471K
= 4.46
The interest coverage ratio for ACI Worldwide Inc has shown fluctuation over the past years. In 2020, the interest coverage ratio was 2.74, indicating that the company generated operating income 2.74 times the amount needed to cover its interest expenses.
By 2021, the interest coverage ratio improved to 4.89, suggesting that the company's ability to cover interest payments had strengthened. This trend continued into 2022 and 2023, with interest coverage ratios of 4.88 and 2.88, respectively.
However, in 2024, the interest coverage ratio decreased to 4.46. While still at a relatively healthy level, this decline may warrant further investigation into the company's operating income and interest expenses to ensure the sustainability of its debt obligations.
Overall, ACI Worldwide Inc's interest coverage ratios reflect a mix of positive and concerning trends in its ability to meet its interest payments from operating income.
Peer comparison
Dec 31, 2024