ACI Worldwide Inc (ACIW)

Interest coverage

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 286,168 333,242 310,823 261,899 226,113 201,357 182,883 202,511 259,828 276,133 257,829 248,038 220,125 158,409 164,149 178,559 155,256 160,218 180,690 145,074
Interest expense (ttm) US$ in thousands 72,471 75,682 77,166 78,604 78,486 74,820 69,316 61,191 53,193 48,131 45,003 44,479 45,060 46,335 48,052 50,934 56,630 62,347 68,409 69,590
Interest coverage 3.95 4.40 4.03 3.33 2.88 2.69 2.64 3.31 4.88 5.74 5.73 5.58 4.89 3.42 3.42 3.51 2.74 2.57 2.64 2.08

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $286,168K ÷ $72,471K
= 3.95

The interest coverage ratio of ACI Worldwide Inc has shown a fluctuating trend over the past few years, indicating the company's ability to meet its interest obligations. The ratio stood at 2.08 as of March 31, 2020, and gradually improved to 5.74 by September 30, 2022. This indicates that the company's operating income was able to cover its interest expenses multiple times.

However, there was a slight decrease in the interest coverage ratio to 2.64 by June 30, 2023, signaling a potential strain on the company's ability to cover interest payments. The ratio further decreased to 2.64 by September 30, 2023, before showing a slight recovery to 3.33 by March 31, 2024.

Overall, the interest coverage ratio of ACI Worldwide Inc has exhibited some volatility, with periods of improvement followed by slight declines. It is important for investors and stakeholders to monitor this ratio closely to assess the company's financial health and ability to service its debt obligations.