Fair Isaac Corporation (FICO)

Short-term

Turnover ratios

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

1. Inventory turnover: The data for Fair Isaac Corporation's inventory turnover is not available for the most recent periods. However, in the past, the company had a relatively stable inventory turnover of 7.37 times, indicating that its inventory was turning over approximately 7.37 times during the year.

2. Receivables turnover: Fair Isaac Corporation's receivables turnover has shown some fluctuations over the periods. The company had a receivables turnover ranging from 2.20 to 3.31 times, with an average turnover of around 2.70 times. This ratio suggests that Fair Isaac Corporation collects its accounts receivables approximately 2.70 times per year on average.

3. Payables turnover: Fair Isaac Corporation's payables turnover also exhibited variability over the observed periods, ranging from 10.83 to 22.82 times. The company seems to manage its payables efficiently, with an average turnover of around 16.92 times. A higher payables turnover indicates that the company is paying its suppliers more frequently.

4. Working capital turnover: Fair Isaac Corporation's working capital turnover has shown significant fluctuations, with values ranging from 4.60 to 318.71 times. Notably, there are periods where the data is not available. The working capital turnover measures the efficiency of utilizing working capital to generate sales. A higher turnover indicates that the company is effectively using its working capital to generate revenue.

Overall, analyzing these activity ratios provides valuable insights into Fair Isaac Corporation's operational efficiency in managing its inventory, receivables, payables, and working capital.

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Average number of days

Days of inventory on hand (DOH) for Fair Isaac Corporation have not been provided in the table, indicating that the company's inventory turnover rate is not explicitly depicted. However, based on the data for Days of Sales Outstanding (DSO) and Number of days payables, some insights can still be drawn.

The Days of Sales Outstanding (DSO) show the average number of days it takes for Fair Isaac Corporation to collect revenue after a sale is made. A decreasing trend in DSO from 152.54 days in Jun 2024 to 135.46 days in Sep 2024 suggests an improvement in the company's receivables management efficiency.

The Number of days of payables represents the average number of days Fair Isaac Corporation takes to pay its suppliers. A decreasing trend in the number of days of payables from 24.04 days in Jun 2024 to 23.56 days in Sep 2024 indicates that the company is paying its suppliers faster.

When DSO decreases and the number of days of payables increases, it suggests that Fair Isaac Corporation is efficiently managing its working capital by collecting revenue faster and potentially extending the time it takes to pay its suppliers.

It would be beneficial to calculate the inventory turnover ratio to gain a more comprehensive understanding of Fair Isaac Corporation's liquidity and efficiency in managing its inventory.

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Long-term

Fair Isaac Corporation's fixed asset turnover ratio has shown fluctuations over the past few years, ranging from as low as 8.27 in Jun 2020 to as high as 139.47 in Dec 2023. This ratio measures how efficiently the company is generating sales from its investment in fixed assets. A higher fixed asset turnover ratio indicates better utilization of fixed assets to generate sales.

On the other hand, the total asset turnover ratio has also varied, with a range of 0.77 in Dec 2019 to 1.00 in Sep 2024. This ratio reflects the company's ability to generate sales from its total assets. A total asset turnover ratio of 1.00 means that the company is generating revenue equal to its total assets.

It is important to note that while the fixed asset turnover ratio has been more volatile, the total asset turnover ratio has shown more stability over the same period. This could imply that Fair Isaac Corporation has been managing its fixed assets efficiently to drive sales, while maintaining a consistent level of overall asset utilization.

Overall, monitoring these long-term activity ratios can provide insight into Fair Isaac Corporation's operational efficiency and asset management strategies over time.