Fair Isaac Corporation (FICO)

Current ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Total current assets	US$ in thousands	617,413	556,448	484,715	550,974	534,078
Total current liabilities	US$ in thousands	380,285	367,688	331,459	559,207	414,511
Current ratio		1.62	1.51	1.46	0.99	1.29

September 30, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $617,413K ÷ $380,285K
= 1.62

Fair Isaac Corporation's current ratio has experienced fluctuations over the past five years. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A higher current ratio indicates a stronger liquidity position.

In 2024, the current ratio of Fair Isaac Corporation is 1.62, showing an improvement compared to the previous year. This suggests that the company has increased its ability to meet its short-term obligations with its current assets. It is important to note that a current ratio above 1 indicates that the company has more current assets than current liabilities.

In 2023 and 2022, the company's current ratio was 1.51 and 1.46, respectively, indicating a relatively stable liquidity position during those years.

However, in 2021, the current ratio dropped to 0.99, which is below 1. This may raise concerns about the company's ability to cover its short-term obligations with its current assets. It could signal potential liquidity issues that need to be addressed.

In 2020, the current ratio improved to 1.29, showing a recovery from the low point in the previous year.

Overall, Fair Isaac Corporation's current ratio has demonstrated variability over the past five years, with some years showing a stronger liquidity position than others. It is essential for the company to maintain a current ratio above 1 to ensure it can meet its short-term obligations effectively.