Fair Isaac Corporation (FICO)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	150,667	156,043	135,667	160,421	136,778	163,022	137,771	139,856	133,202	155,062	174,219	162,157	195,354	237,612	197,836	144,662	157,394	125,673	108,966	111,216
Short-term investments	US$ in thousands	—	—	—	-36,955	—	-32,047	—	—	—	—	—	—	—	—	30,437	28,455	25,513	—	—	—
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
Cash ratio		0.40	0.46	0.43	0.29	0.37	0.33	0.37	0.39	0.40	0.40	0.46	0.50	0.35	0.44	0.46	0.44	0.44	0.27	0.23	0.25

September 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($150,667K + $—K) ÷ $380,285K
= 0.40

The cash ratio of Fair Isaac Corporation has fluctuated over the past few years, ranging from 0.23 to 0.50. The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources of financing.

In recent quarters, Fair Isaac Corporation's cash ratio has generally been at a healthy level, typically around 0.40. This suggests that the company has a sufficient amount of cash on hand to cover its short-term obligations, providing a cushion for unexpected expenses or downturns in business activity.

The trend of the cash ratio shows some variability, with some quarters showing higher ratios (such as 0.46 and 0.50) and others showing lower ratios (such as 0.27 and 0.23). It is important for the company to maintain a consistent and appropriate level of cash reserves to ensure financial stability and flexibility in managing its operations.

Overall, Fair Isaac Corporation's cash ratio indicates a solid financial position in terms of liquidity, but management should continue to monitor and manage its cash resources effectively to support ongoing business operations and potential investment opportunities.