Fair Isaac Corporation (FICO)

Quick ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cash	US$ in thousands	150,667	136,778	133,202	195,354	157,394
Short-term investments	US$ in thousands	—	-33,014	—	—	25,513
Receivables	US$ in thousands	637,437	591,843	487,796	467,515	515,730
Total current liabilities	US$ in thousands	380,285	367,688	331,459	559,207	414,511
Quick ratio		2.07	1.89	1.87	1.19	1.69

September 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($150,667K + $—K + $637,437K) ÷ $380,285K
= 2.07

The quick ratio of Fair Isaac Corporation has shown a fluctuating trend over the past five years. The ratio stood at 2.07 as of Sep 30, 2024, indicating the company had $2.07 in liquid assets available to cover each dollar of its current liabilities. This suggests a strong ability to meet short-term obligations without relying on inventory sales.

Comparing this to the previous years, the quick ratio was relatively stable between 1.87 and 1.89 from 2022 to 2023, showing a moderate liquidity position. However, there was a notable drop in the quick ratio to 1.19 in 2021, signaling a potential liquidity concern as the company may have had fewer liquid assets to cover its short-term liabilities at that time.

The recovery in the quick ratio to 1.69 in 2020 indicates an improvement in Fair Isaac Corporation's short-term liquidity position compared to the previous year. Overall, the recent quick ratio of 2.07 demonstrates a healthier liquidity position, suggesting the company's ability to meet its short-term obligations has strengthened as of the most recent reporting period.