Fair Isaac Corporation (FICO)
Liquidity ratios
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 0.93 | 0.95 | 0.91 |
| Quick ratio | 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 | 1.08 | 0.87 | 0.80 |
| Cash ratio | 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 | 0.22 | 0.17 | 0.18 |
Fair, Isaac Corp.'s liquidity ratios reflect its ability to meet short-term obligations. The current ratio, which measures the company's ability to pay its short-term liabilities with its short-term assets, has shown a relatively stable trend, fluctuating between 1.23 and 1.51 over the past eight quarters. This indicates that the company has generally had sufficient current assets to cover its current liabilities.
Similarly, the quick ratio, which excludes inventory from current assets, has mirrored the trend of the current ratio, suggesting that the company has enough liquid assets to cover its short-term obligations without relying on inventory.
The cash ratio, which measures the firm's ability to cover its current liabilities with its cash and cash equivalents, has fluctuated between 0.46 and 0.55. While this ratio has been more variable, it still indicates that the company maintains a reasonable level of cash reserves relative to its short-term obligations.
Overall, the liquidity ratios of Fair, Isaac Corp. demonstrate a consistent ability to meet its short-term financial commitments, with the company effectively managing its current assets and cash resources.
Additional liquidity measure
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 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 | 108.69 | 82.69 | 75.74 |
The cash conversion cycle (CCC) of Fair, Isaac Corp. has shown some fluctuations over the past eight quarters. The CCC started at 53.00 days in March 2022, reaching its peak at 75.47 days in June 2023, and then decreasing to 65.16 days at the end of December 2023.
The increase in the CCC signifies that Fair, Isaac Corp. took longer to convert its resources into cash during the first half of 2023 compared to the previous quarters. This could be due to factors such as slower collections from customers or stretched payment terms to suppliers, which may have tied up cash in the operating cycle.
The decrease in the CCC towards the end of 2023 suggests an improvement in the company's cash conversion efficiency. This could indicate better management of accounts receivable, inventory, and accounts payable, allowing the company to free up cash more quickly.
Overall, while the CCC has fluctuated, it is essential for Fair, Isaac Corp. to monitor this metric closely and continue to focus on managing working capital effectively to efficiently convert its resources into cash.