Fair Isaac Corporation (FICO)

Payables turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cost of revenue	US$ in thousands	348,206	311,053	302,174	332,462	361,142
Payables	US$ in thousands	22,473	19,009	17,273	20,749	23,033
Payables turnover		15.49	16.36	17.49	16.02	15.68

September 30, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $348,206K ÷ $22,473K
= 15.49

Fair Isaac Corporation's payables turnover ratio has shown a slight decreasing trend over the past five years, from 15.68 in 2020 to 15.49 in 2024. This indicates that the company's ability to efficiently manage its accounts payables has decreased slightly over this period.

A higher payables turnover ratio typically indicates that a company is able to pay off its suppliers quickly, which can be a positive sign of financial health. However, a decreasing trend in the payables turnover ratio may suggest that Fair Isaac Corporation is taking longer to pay its suppliers, which could potentially strain relationships with vendors or signal liquidity issues.

It is important for stakeholders to monitor this trend closely to assess the impact on the company's working capital management and overall financial performance. Further analysis of the company's financial statements and operational practices may be needed to understand the reasons behind the decreasing payables turnover ratio.