Fair Isaac Corporation (FICO)

Payables turnover

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	348,206	341,464	325,085	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
Payables	US$ in thousands	22,473	22,489	18,835	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
Payables turnover		15.49	15.18	17.26	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

September 30, 2024 calculation

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

Fair Isaac Corporation's payables turnover ratio measures how efficiently the company pays its suppliers. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which can be interpreted as a positive signal of strong liquidity management.

Analyzing the trend of Fair Isaac Corporation's payables turnover ratio over the past few quarters, we can observe that the ratio has generally been fluctuating but has shown an overall increasing trend. For instance, the payables turnover ratio increased from 15.68 in Sep 2020 to 17.26 in Mar 2024, demonstrating an improvement in the company's efficiency in managing its payables.

The payables turnover ratio peaked at 22.82 in Mar 2023, indicating a significant improvement in the company's ability to pay its suppliers promptly. This could suggest effective cash flow management and good relationships with suppliers during that period.

It is worth noting that the payables turnover ratio has displayed some volatility, with fluctuations in certain quarters such as the decrease from 17.57 in Mar 2022 to 15.28 in Dec 2021. However, the ratio generally remained above 15 in most quarters, indicating consistent performance in managing payables efficiently.

Overall, the increasing trend in Fair Isaac Corporation's payables turnover ratio signifies an improvement in the company's ability to manage its accounts payable effectively and ensure timely payments to suppliers, reflecting positively on its liquidity management.