Fair Isaac Corporation (FICO)

Payables turnover

		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
Cost of revenue (ttm)	US$ in thousands	317,945	311,053	310,707	317,552	309,540	302,174	292,049	295,598	312,137	332,462	353,777	360,106	359,912	361,142	355,462	354,108	351,537	336,845	328,811	320,607
Payables	US$ in thousands	18,584	19,009	16,787	13,915	16,838	17,273	17,399	16,828	20,422	20,749	19,639	19,767	21,749	23,033	19,816	25,306	32,474	23,118	19,611	16,249
Payables turnover		17.11	16.36	18.51	22.82	18.38	17.49	16.79	17.57	15.28	16.02	18.01	18.22	16.55	15.68	17.94	13.99	10.83	14.57	16.77	19.73

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $317,945K ÷ $18,584K
= 17.11

Fair, Isaac Corp.'s payables turnover has shown some fluctuation over the past few quarters. The payables turnover ratio measures how efficiently a company manages its trade credit owed to suppliers. Fair, Isaac Corp.'s payables turnover has ranged from 16.36 to 22.82 over the last eight quarters, with an average of approximately 17.89.

A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which could suggest good cash flow management or possibly strong bargaining power with suppliers. On the other hand, a lower ratio may indicate that the company is taking longer to pay its suppliers, potentially benefiting from more favorable credit terms.

The significant increase in payables turnover in the Mar 31, 2023, quarter compared to the previous quarters might indicate that Fair, Isaac Corp. has become more efficient in paying its trade payables. However, it would be important to analyze this in the context of the industry and company-specific circumstances to draw more definitive conclusions about their payables management.