Fair Isaac Corporation (FICO)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.62 | 1.87 | 2.04 | 1.31 | 1.51 | 1.46 | 1.40 | 1.36 | 1.46 | 1.23 | 1.26 | 1.44 | 0.99 | 1.02 | 1.10 | 1.30 | 1.29 | 1.05 | 1.01 | 1.04 |
| Quick ratio | 2.07 | 2.38 | 2.59 | 1.57 | 1.98 | 1.82 | 1.81 | 1.76 | 1.87 | 1.60 | 1.58 | 1.80 | 1.19 | 1.26 | 1.30 | 1.69 | 1.69 | 1.27 | 1.17 | 1.19 |
| 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 |
Fair Isaac Corporation's liquidity ratios have shown fluctuations over the past few quarters. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has ranged from 1.23 to 2.04. The ratio improved from December 2021 to September 2024, indicating an increase in the company's short-term liquidity.
Similarly, the quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has varied from 1.17 to 2.59. The quick ratio has generally shown an upward trend, reflecting the company's strengthening ability to meet its immediate obligations without relying on inventory.
The cash ratio, which assesses the company's ability to cover its current liabilities with cash and cash equivalents, has fluctuated between 0.23 and 0.50. While the ratio improved significantly in the most recent quarters, it has shown some volatility over the period under review.
Overall, the company's liquidity position appears to have improved in recent quarters, as indicated by the current, quick, and cash ratios. The upward trend in these ratios suggests that Fair Isaac Corporation has enhanced its ability to meet short-term financial obligations and maintain liquidity.
Additional liquidity measure
| 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 conversion cycle | days | 111.90 | 128.50 | 144.53 | 118.86 | 130.27 | 134.82 | 130.54 | 113.61 | 115.03 | 106.52 | 91.57 | 86.52 | 101.21 | 94.71 | 146.95 | 114.73 | 122.13 | 116.03 | 108.93 | 93.20 |
To analyze Fair Isaac Corporation's cash conversion cycle over the past few quarters, we observe fluctuations in the efficiency of the company's working capital management. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and accounts receivable into cash flows from sales.
In the most recent period, ending September 30, 2024, Fair Isaac Corporation's cash conversion cycle stands at 111.90 days. This indicates a slight improvement compared to the previous quarter but is still higher than the levels observed earlier in 2022. The cycle peaked in March 2021 at 146.95 days, reflecting extended periods of holding inventory and collecting receivables.
Analyzing the trend over the past few quarters, we notice fluctuations in the efficiency of Fair Isaac Corporation's working capital management. The company managed to reduce its cash conversion cycle significantly from a high of 146.95 days in March 2021 to a low of 86.52 days in December 2021. However, the cycle has been trending upwards since then, signaling potential challenges in managing working capital effectively.
A prolonged cash conversion cycle can indicate inefficiencies in inventory management, slow collections from customers, or extended payment terms with suppliers. Fair Isaac Corporation may need to focus on streamlining its operations, improving cash collection processes, and optimizing inventory levels to reduce the cycle duration and enhance overall liquidity.
Overall, the analysis of Fair Isaac Corporation's cash conversion cycle suggests fluctuations in working capital efficiency over the past quarters, highlighting the importance of closely monitoring and managing operational processes to enhance cash flow and financial performance.