Fair Isaac Corporation (FICO)

Operating return on assets (Operating ROA)

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Operating income	US$ in thousands	642,830	542,414	505,489	295,969	253,548
Total assets	US$ in thousands	1,575,280	1,442,030	1,567,780	1,606,240	1,433,450
Operating ROA		40.81%	37.61%	32.24%	18.43%	17.69%

September 30, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $642,830K ÷ $1,575,280K
= 40.81%

Fair, Isaac Corp.'s operating return on assets (ROA) has shown a consistent upward trend over the past five years. The operating ROA increased from 17.69% in September 2019 to 40.68% in September 2023, reflecting a significant improvement in the company's operating efficiency in generating profits from its assets. This positive trend suggests that management has been effectively utilizing the company's assets to generate operating income.

The company's ability to increase its operating ROA indicates a higher level of operational effectiveness and productivity. It implies that Fair, Isaac Corp. has been successful in optimizing its asset utilization and improving operational efficiency, which can lead to higher profitability. This trend also signals a positive performance trajectory for the company's operations and potentially enhances investor confidence in its ability to generate sustainable returns from its assets.

The consistent growth in operating ROA over the years may signify improved management of operating expenses and the efficient use of assets to drive revenue and profit growth. This trend is indicative of the company's capability to effectively manage its resources, maintain strong operational performance, and potentially create value for its shareholders.

Overall, Fair, Isaac Corp.'s increasing operating ROA demonstrates its ability to generate higher returns from its operational assets, indicating improved operational efficiency and potentially positioning the company for sustained profitability and growth.