Fair Isaac Corporation (FICO)
Cash conversion cycle
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 135.46 | 152.43 | 135.91 | 123.99 | 145.41 |
| Number of days of payables | days | 23.56 | 22.31 | 20.86 | 22.78 | 23.28 |
| Cash conversion cycle | days | 111.91 | 130.12 | 115.05 | 101.21 | 122.13 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 135.46 – 23.56
= 111.91
Fair Isaac Corporation's cash conversion cycle has shown fluctuations over the past five years. In the most recent fiscal year ending on September 30, 2024, the cash conversion cycle decreased to 111.91 days from 130.12 days in the prior year. This indicates that the company took fewer days to convert its investments in inventory and accounts receivable into cash.
Comparing the latest figure to the data from the previous years, it is evident that the company's cash conversion cycle was relatively longer in 2020 and 2023 at 122.13 days and 130.12 days respectively. However, there was an improvement in the efficiency of the cash conversion cycle in 2021 at 101.21 days and a slight increase in 2022 at 115.05 days.
Overall, the trend suggests that Fair Isaac Corporation has been able to manage its working capital more effectively in the most recent fiscal year, resulting in a shorter cash conversion cycle. This improvement could potentially indicate better inventory management, faster collection of accounts receivable, or more efficient payment of accounts payable.
Peer comparison
Sep 30, 2024