ACI Worldwide Inc (ACIW)

Solvency ratios

	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
Debt-to-assets ratio	0.28	0.30	0.32	0.34	0.32	0.29	0.32	0.32	0.32	0.32	0.34	0.35	0.33	0.39	0.41	0.42	0.41	0.41	0.39	0.31
Debt-to-capital ratio	0.42	0.45	0.46	0.46	0.46	0.44	0.46	0.46	0.45	0.46	0.48	0.48	0.48	0.52	0.54	0.55	0.54	0.56	0.56	0.38
Debt-to-equity ratio	0.73	0.82	0.85	0.87	0.86	0.79	0.85	0.85	0.82	0.86	0.91	0.92	0.93	1.10	1.18	1.24	1.18	1.30	1.28	0.63
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

The solvency ratios of ACI Worldwide Inc provide insights into the company's financial health and ability to meet its long-term obligations. The debt-to-assets ratio shows the proportion of total assets financed by debt, with lower values indicating less reliance on debt. ACI Worldwide's debt-to-assets ratio has been relatively stable around 0.30 to 0.36 over the past eight quarters, suggesting a prudent level of debt utilization.

The debt-to-capital ratio measures the extent to which debt contributes to the company's capital structure. ACI Worldwide's debt-to-capital ratio has ranged from 0.44 to 0.48, indicating that debt constitutes around 44% to 48% of the company's capital structure during the periods under review.

The debt-to-equity ratio reflects the proportion of equity and debt in the company's financing, with higher values indicating higher financial leverage. ACI Worldwide's debt-to-equity ratio has fluctuated between 0.78 and 0.93, implying that the company has been relying more on debt financing compared to equity in recent quarters.

The financial leverage ratio measures the company's total assets relative to equity, providing an indication of how the company is using leverage to finance its operations. ACI Worldwide's financial leverage ratio has ranged from 2.58 to 2.72, indicating that the company has been employing leverage to magnify returns for shareholders.

Overall, ACI Worldwide Inc's solvency ratios suggest a moderate level of debt usage and financial leverage, which could be manageable given the company's operational performance and cash flow generation. It is essential for investors and stakeholders to monitor these ratios over time to assess the company's ability to maintain a healthy solvency position.

Coverage ratios

	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
Interest coverage	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	2.13	2.62	2.43	2.75

Interest coverage measures a company's ability to pay interest expenses on outstanding debt with its operating income. ACI Worldwide Inc's interest coverage has shown a declining trend over the last few quarters, starting at 7.16 in Q1 2022 and decreasing to 3.43 in Q4 2023.

This indicates that the company's ability to cover its interest expenses has weakened over time. While the interest coverage ratios above 1 suggest that the company is generating enough operating income to cover its interest obligations, a downward trend may raise concerns about the company's ability to meet its debt payments in the future.

A lower interest coverage ratio could be a sign of increasing debt levels, declining profitability, or both. Investors and creditors may view a declining interest coverage ratio as a potential risk factor, as it may indicate a higher likelihood of default on debt obligations. It would be important for ACI Worldwide Inc to closely monitor its interest coverage ratio and take necessary steps to improve it, such as increasing profitability, reducing debt levels, or refinancing debt at lower interest rates.