Fair Isaac Corporation (FICO)

Cash ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Cash and cash equivalents	US$ in thousands	136,778	133,202	195,354	157,394	106,426
Short-term investments	US$ in thousands	-33,014	—	—	25,513	—
Total current liabilities	US$ in thousands	367,688	331,459	559,207	414,511	490,828
Cash ratio		0.28	0.40	0.35	0.44	0.22

September 30, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($136,778K + $-33,014K) ÷ $367,688K
= 0.28

The cash ratio of Fair, Isaac Corp. has exhibited some fluctuations over the past five years. The cash ratio, which measures the company's ability to cover its short-term liabilities with its cash and cash equivalents, was 0.46 as of September 30, 2023. This indicates that for every dollar of current liabilities, the company had $0.46 in cash and cash equivalents on hand.

Comparing this to previous years, the cash ratio was 0.49 in 2022, 0.43 in 2021, 0.48 in 2020, and 0.32 in 2019. The fluctuation in the cash ratio suggests varying levels of liquidity and the company's ability to meet its short-term obligations over these years.

The trend indicates that the company has maintained a relatively strong ability to cover its short-term liabilities with cash and cash equivalents, with a slight decrease in 2021 followed by a modest increase in 2023. However, it's important to note that the cash ratio should be analyzed in conjunction with other liquidity and solvency ratios to gain a comprehensive understanding of the company's financial health.