Fair Isaac Corporation (FICO)

Return on total capital

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	649,170	540,276	513,234	299,177	255,824
Long-term debt	US$ in thousands	1,811,660	1,823,670	1,009,020	739,435	606,790
Total stockholders’ equity	US$ in thousands	-687,990	-801,947	-110,942	331,082	289,767
Return on total capital		57.77%	52.88%	57.15%	27.95%	28.53%

September 30, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $649,170K ÷ ($1,811,660K + $-687,990K)
= 57.77%

The return on total capital for Fair, Isaac Corp. has shown a consistent upward trend over the past five years, indicating improved efficiency in generating profits from its invested capital. In 2023, the return on total capital reached 54.61%, marking a significant increase from 51.57% in 2022. This suggests that the company has been effectively utilizing its total capital to generate higher returns for its shareholders.

The continuous improvement in return on total capital demonstrates the company's ability to create value from its capital investments. It indicates that the company is efficiently utilizing its resources and managing its assets to generate increased profits. This trend reflects positively on the company's financial management and operational performance. Overall, Fair, Isaac Corp.'s strong and improving return on total capital portrays a favorable picture of its financial health and operational efficiency.