Fair Isaac Corporation (FICO)

The current ratio is a key financial metric that provides insight into a company's ability to meet its short-term obligations using its current assets. A current ratio greater than 1 indicates that a company has more current assets than current liabilities, suggesting a strong liquidity position. Let's analyze Fair, Isaac Corp.'s current ratio over the past five years:

1.51 (Sep 30, 2023): Fair, Isaac Corp. exhibited a current ratio of 1.51, indicating that for every dollar of current liabilities, the company had $1.51 in current assets. This suggests a healthy liquidity position, enabling the company to easily cover its short-term obligations.

1.46 (Sep 30, 2022): The current ratio improved slightly to 1.46 compared to the previous year, indicating a further strengthening of the company's ability to meet its short-term liabilities. This may indicate efficient management of current assets and liabilities.

0.99 (Sep 30, 2021): The current ratio dropped to 0.99, falling below the ideal threshold of 1. This suggests that Fair, Isaac Corp. had just enough current assets to cover its current liabilities, indicating potential liquidity challenges.

1.29 (Sep 30, 2020): Fair, Isaac Corp.'s current ratio increased to 1.29, demonstrating an improvement in liquidity compared to the prior year. The company appeared better positioned to meet its short-term obligations.

0.93 (Sep 30, 2019): The current ratio was 0.93, indicating that the company had less current assets than current liabilities, raising concerns about its short-term liquidity position.

In conclusion, Fair, Isaac Corp. has shown fluctuations in its current ratio over the past five years, with some years demonstrating healthy liquidity and others indicating potential liquidity challenges. It's important for stakeholders to monitor these trends and evaluate the company's ability to effectively manage its short-term obligations and current assets in the future.

Peer comparison

Sep 30, 2023