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ACI Worldwide (ACI Worldwide) ROE %

: 38.69% (As of Dec. 2023)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. ACI Worldwide's annualized net income for the quarter that ended in Dec. 2023 was $490 Mil. ACI Worldwide's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $1,268 Mil. Therefore, ACI Worldwide's annualized ROE % for the quarter that ended in Dec. 2023 was 38.69%.

The historical rank and industry rank for ACI Worldwide's ROE % or its related term are showing as below:

ACIW' s ROE % Range Over the Past 10 Years
Min: 0.68   Med: 10.04   Max: 18.38
Current: 10.01

During the past 13 years, ACI Worldwide's highest ROE % was 18.38%. The lowest was 0.68%. And the median was 10.04%.

ACIW's ROE % is ranked better than
66.46% of 2639 companies
in the Software industry
Industry Median: 3.15 vs ACIW: 10.01

ACI Worldwide ROE % Historical Data

The historical data trend for ACI Worldwide's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

ACI Worldwide Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.16 6.22 10.43 11.66 9.65

ACI Worldwide Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 30.18 -10.95 -2.29 12.72 38.69

Competitive Comparison

For the Software - Infrastructure subindustry, ACI Worldwide's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


ACI Worldwide ROE % Distribution

For the Software industry and Technology sector, ACI Worldwide's ROE % distribution charts can be found below:

* The bar in red indicates where ACI Worldwide's ROE % falls into.



ACI Worldwide ROE % Calculation

ACI Worldwide's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=121.509/( (1193.187+1324.297)/ 2 )
=121.509/1258.742
=9.65 %

ACI Worldwide's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=490.464/( (1211.035+1324.297)/ 2 )
=490.464/1267.666
=38.69 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


ACI Worldwide  (NAS:ACIW) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=490.464/1267.666
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(490.464 / 1906.252)*(1906.252 / 3349.7835)*(3349.7835 / 1267.666)
=Net Margin %*Asset Turnover*Equity Multiplier
=25.73 %*0.5691*2.6425
=ROA %*Equity Multiplier
=14.64 %*2.6425
=38.69 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=490.464/1267.666
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (490.464 / 616.484) * (616.484 / 689.264) * (689.264 / 1906.252) * (1906.252 / 3349.7835) * (3349.7835 / 1267.666)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7956 * 0.8944 * 36.16 % * 0.5691 * 2.6425
=38.69 %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


ACI Worldwide ROE % Related Terms

Thank you for viewing the detailed overview of ACI Worldwide's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


ACI Worldwide (ACI Worldwide) Business Description

Traded in Other Exchanges
Address
2811 Ponce de Leon Boulevard, PH 1, Coral Gables, FL, USA, 33134
ACI Worldwide Inc develops, markets, and installs a portfolio of software products primarily focused on facilitating electronic payments. The firm also leverages its distribution network in the Americas; Europe, the Middle East, and Africa, or EMEA; and Asia-Pacific regions to sell software developed by third parties. ACI software products process payment transactions for retail banking clients, billers such as utilities and healthcare providers, and community banks and credit unions. ACI's customers are financial institutions all over the world, but most of the revenue is generated in the United States and EMEA regions.
Executives
Alessandro Silva officer: Chief Revenue Officer 6060 COVENTRY DRIVE, ELKHORN NE 68022
Scott W Behrens officer: SVP, CAO and Controller 6060 COVENTRY DRIVE, ELKHORN NE 68022
Deborah L Guerra officer: Chief Product Officer 6060 COVENTRY DRIVE, ELKHORN NE 68022
Warsop Thomas W Iii director 6060 COVENTRY DRIVE, ELKHORN NE 68022
Ram Kumar Puppala officer: Chief Technology Officer 6060 COVENTRY DRIVE, ELKHORN NE 68022
Adalio T Sanchez director 6060 COVENTRY DRIVE, ELKHORN NE 68022
Odilon Almeida officer: President and CEO 7001 EAST BELLEVIEW AVENUE, DENVER CO 80237
Didier R Lamouche director 6060 COVENTRY DRIVE, ELKHORN NE 68022
Janet O Estep director 6060 COVENTRY DRIVE, ELKHORN NE 68022
Jeremy Wilmot officer: EVP, Group President, AOP 6060 COVENTRY DRIVE, ELKHORN NE 68022
Mary P Harman director 6060 COVENTRY DRIVE, ELKHORN NE 68022
Samir Michael Zabaneh director 90 NASSAU STREET, 2ND FLOOR, HEARTLAND PAYMENT SYSTEMS, PRINCETON NJ 08542
Charles K Bobrinskoy director C/O INNERWORKINGS, INC., 600 WEST CHICAGO AVENUE, SUITE 850, CHICAGO IL 60654
Alvaro Monserrat officer: Chief Revenue Officer 2400 ACORN PALM ROAD, BOCA RATON FL 33432
Craig S Saks officer: Group President 6060 COVENTRY DRIVE, ELKHORN NE 68022