Fair Isaac Corporation (FICO)
Profitability ratios
Return on sales
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 78.05% | 76.93% | 75.84% | 72.10% | 70.96% |
| Operating profit margin | 45.36% | 41.41% | 36.73% | 22.86% | 21.86% |
| Pretax margin | 39.06% | 35.98% | 34.38% | 19.85% | 18.63% |
| Net profit margin | 30.30% | 28.51% | 28.49% | 18.26% | 16.56% |
Fair, Isaac Corp. has shown a consistent improvement in its profitability ratios over the past five years. The gross profit margin has steadily increased from 70.96% in 2019 to 79.45% in 2023, indicating efficient cost management and improved pricing strategies. The operating profit margin also exhibited strong growth, rising from 21.86% in 2019 to 42.34% in 2023, reflecting effective control over operating expenses and enhanced operational efficiency.
Furthermore, the pretax margin has shown a positive trend, reaching 36.58% in 2023 from 18.63% in 2019, signifying improved profitability before accounting for taxes. The net profit margin, a key measure of overall profitability, also experienced a notable increase, climbing from 16.56% in 2019 to 28.37% in 2023, highlighting the company's ability to generate greater bottom-line profits for each dollar of sales.
Overall, Fair, Isaac Corp.'s profitability ratios demonstrate a consistent and substantial improvement over the past five years, indicating effective cost control, operational efficiency, and strong financial performance.
Return on investment
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 40.81% | 37.61% | 32.24% | 18.43% | 17.69% |
| Return on assets (ROA) | 27.26% | 25.90% | 25.01% | 14.72% | 13.40% |
| Return on total capital | 57.77% | 52.88% | 57.15% | 27.95% | 28.53% |
| Return on equity (ROE) | — | — | — | 71.41% | 66.30% |
Fair, Isaac Corp. has shown consistently strong profitability ratios over the past five years. The operating return on assets (Operating ROA) has steadily increased from 17.69% in 2019 to 40.68% in 2023, indicating the company's ability to generate operating income from its assets. Similarly, the return on assets (ROA) has also improved, reaching 27.26% in 2023 from 13.40% in 2019. This demonstrates the company's overall efficiency in generating profit from its total assets.
Furthermore, the return on total capital has shown a consistent upward trend, increasing from 22.75% in 2019 to 54.61% in 2023, which suggests that the company has been effectively utilizing its total capital to generate higher returns.
Unfortunately, data for return on equity (ROE) is not available for the years prior to 2020. However, in 2020 and 2021, the ROE was not reported, indicating that the company may have had a negative equity position during those years.
Overall, Fair, Isaac Corp. has exhibited impressive profitability ratios, reflecting its strong performance in generating returns from its assets and capital. This indicates efficient management and effective utilization of resources to drive profitability.