Fair Isaac Corporation (FICO)
Cash conversion cycle
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 152.43 | 135.91 | 123.99 | 145.41 | 133.74 |
| Number of days of payables | days | 22.31 | 20.86 | 22.78 | 23.28 | 25.05 |
| Cash conversion cycle | days | 130.12 | 115.05 | 101.21 | 122.13 | 108.69 |
September 30, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 152.43 – 22.31
= 130.12
The cash conversion cycle of Fair, Isaac Corp. has shown a fluctuating trend over the past five years. In the fiscal year ending September 30, 2023, the company's cash conversion cycle increased to 71.25 days from 64.58 days in the previous year. This suggests that the company took longer to convert its investments in inventory and accounts receivable into cash during this period.
In comparison to the fiscal year ending September 30, 2021, the cash conversion cycle increased by 7.5% in 2023. This indicates that the company's management of inventory and receivables may have been less efficient, leading to a longer cash conversion cycle.
Similarly, when compared to the fiscal year ending September 30, 2020 and 2019, the cash conversion cycle for 2023 also showed an increase, suggesting a potential trend of less efficient working capital management over the past few years.
In summary, Fair, Isaac Corp.'s cash conversion cycle has shown an increasing trend, which may raise concerns about the company's ability to efficiently manage its working capital and convert its investments into cash. This trend may require further investigation into the company's operational and financial management practices.
Peer comparison
Sep 30, 2023