Fair Isaac Corporation (FICO)

Days of sales outstanding (DSO)

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Receivables turnover		2.39	2.69	2.94	2.51	2.73
DSO	days	152.43	135.91	123.99	145.41	133.74

September 30, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 2.39
= 152.43

To analyze Fair, Isaac Corp.'s days of sales outstanding (DSO) over the past five years, we look at the trend to determine the effectiveness of the company's accounts receivable management. DSO measures the average number of days it takes for a company to collect payment after a sale is made.

The trend in the DSO for Fair, Isaac Corp. shows a slight increase from 85.44 days in 2022 to 93.55 days in 2023. This increase suggests that the company took longer to collect payments from its customers, which can tie up working capital and potentially indicate issues with credit and collection policies.

Comparing the DSO to previous years, the figures have fluctuated. In 2021, the DSO was 86.53 days, and in 2020 it was 94.22 days, showing a pattern of variability in the company's collection efficiency. This may indicate changes in customer payment patterns, credit terms, or the company's collection efforts.

A high DSO can signal potential liquidity issues, as it implies a delay in cash inflows from sales. However, it's worth noting that the absolute DSO value must be interpreted in the context of the industry and the company's specific business model.

Overall, the trend in Fair, Isaac Corp.'s DSO indicates a need to closely monitor and potentially improve the company's accounts receivable management and collection procedures to ensure timely payment collection and efficient working capital management.