Fair Isaac Corporation (FICO)

Working capital 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
Revenue (ttm)	US$ in thousands	1,717,589	1,549,460	1,502,622	1,451,275	1,415,832	1,382,391	1,338,493	1,322,108	1,310,169	1,304,205	1,394,931	1,376,365	1,376,295	1,426,790	1,319,550	1,306,103	1,294,562	1,225,550	1,226,068	1,196,331
Total current assets	US$ in thousands	617,413	631,135	641,472	565,263	556,448	575,011	521,326	483,822	484,715	473,257	482,209	461,996	550,974	556,880	551,818	508,441	534,078	483,011	483,671	460,994
Total current liabilities	US$ in thousands	380,285	337,216	315,120	433,109	367,688	392,946	373,278	354,988	331,459	383,855	382,762	321,797	559,207	544,769	500,561	391,042	414,511	460,187	479,824	442,032
Working capital turnover		7.24	5.27	4.60	10.98	7.50	7.59	9.04	10.26	8.55	14.59	14.03	9.82	—	117.81	25.74	11.13	10.83	53.70	318.71	63.09

September 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,717,589K ÷ ($617,413K – $380,285K)
= 7.24

The working capital turnover ratio for Fair Isaac Corporation fluctuated over the historical period provided. The ratio peaked at 318.71 in the first quarter of 2020, signifying that the company generated significant revenue relative to its working capital during that period. Subsequently, there was a sharp decline to 53.70 in the fourth quarter of 2020, indicating a decrease in efficiency in utilizing working capital to generate revenue.

In the following quarters of 2021 and 2022, the working capital turnover ratio remained relatively stable, hovering around single-digit values. It witnessed a substantial increase to 14.59 in the third quarter of 2022 and further climbed to 14.03 in the fourth quarter of the same year, suggesting improved efficiency in utilizing working capital for revenue generation.

The trend continued in 2023 and early 2024, with the working capital turnover ratio ranging between 4.60 and 9.04. The ratio then spiked to 10.98 in the fourth quarter of 2023, indicating a notable increase in revenue generated relative to working capital employed.

Overall, the working capital turnover ratio of Fair Isaac Corporation depicts fluctuations but generally reflects varying levels of efficiency in utilizing working capital to generate revenue over the historical period provided. Further analysis and comparison with industry benchmarks could provide additional insight into the company's operational efficiency.