Fair Isaac Corporation (FICO)

Short-term

Turnover ratios

Fair Isaac Corporation's activity ratios provide insights into how efficiently the company is managing its assets and liabilities.

1. Receivables Turnover:
Fair Isaac Corporation's receivables turnover has been relatively consistent over the past five years, ranging from 2.39 to 2.94. This ratio indicates that the company is efficient in collecting payments from its customers, with higher values suggesting faster collection of accounts receivable. The slight fluctuations in this ratio may be attributed to changes in the company's credit policies or customer base.

2. Payables Turnover:
Fair Isaac Corporation's payables turnover has shown a decreasing trend over the last five years, ranging from 15.49 to 17.49. A decreasing payables turnover ratio may indicate that the company is taking longer to pay its suppliers, which could potentially strain its relationships with vendors. However, a higher payables turnover ratio may also suggest that the company is successfully negotiating longer payment terms with its suppliers, improving its working capital management.

3. Working Capital Turnover:
Fair Isaac Corporation's working capital turnover has shown fluctuations over the past few years, with values ranging from 7.24 to 10.83. This ratio reflects the efficiency of the company in generating revenue from its working capital. A higher working capital turnover ratio indicates that Fair Isaac Corporation is effectively utilizing its current assets to generate sales. The decline in this ratio over time could be a result of changes in the company's business operations or investments in long-term assets.

Overall, Fair Isaac Corporation's activity ratios suggest that the company is managing its assets and liabilities efficiently, with room for improvement in optimizing payment terms with suppliers and maintaining a consistent level of working capital turnover.

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Average number of days

Fair Isaac Corporation's activity ratios provide insights into the efficiency of its operations and management of its working capital.

1. Days of Inventory on Hand (DOH):
Unfortunately, specific data for Days of Inventory on Hand is not provided in the table for analysis. However, this ratio measures the average number of days it takes for the company to sell its entire inventory. A lower DOH indicates that the company is efficiently managing its inventory levels.

2. Days of Sales Outstanding (DSO):
Fair Isaac Corporation's Days of Sales Outstanding has varied over the past five years. In 2024, the DSO decreased to 135.46 days from 152.43 days in 2023. This indicates that the company collected its accounts receivable more quickly in 2024. A lower DSO is generally preferable as it signifies faster cash collection from customers.

3. Number of Days of Payables:
The Number of Days of Payables for Fair Isaac Corporation has also fluctuated but remained relatively stable over the years. In 2024, the company took 23.56 days to pay its payables compared to 22.31 days in 2023. A higher number of days of payables may indicate that the company is taking longer to pay its suppliers, potentially improving cash flow management.

Overall, while specific DOH data is unavailable for analysis, the trends in DSO and Number of Days of Payables suggest that Fair Isaac Corporation has been focusing on improving its accounts receivable collection and managing its payables effectively, which are positive indicators of operational efficiency and working capital management.

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Long-term

Fair Isaac Corporation's long-term activity ratios paint a picture of efficiency and effectiveness in managing its fixed assets and total assets over the years.

The fixed asset turnover ratio, which measures the company's ability to generate revenue from its investments in fixed assets, has shown a fluctuating trend. In 2024, the ratio stood at 44.65, indicating a significant increase compared to the prior year's 129.24. This sharp decrease could suggest either a reduction in sales generated by fixed assets or an increase in the value of fixed assets. Nonetheless, the ratio remains substantially high, demonstrating the firm's efficient use of its fixed assets to generate revenue.

On the other hand, the total asset turnover ratio, which reveals how well the company utilizes its total assets to generate sales, has been relatively stable over the years. In 2024, the total asset turnover ratio reached 1.00, showing an improvement compared to the previous years, where it ranged between 0.81 and 0.91. This implies that Fair Isaac Corporation is effectively utilizing its total assets to generate sales revenue.

Overall, the company's long-term activity ratios suggest that Fair Isaac Corporation is efficiently managing both its fixed assets and total assets to generate revenue and maximize shareholder value.