Fair Isaac Corporation (FICO)
Solvency ratios
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 1.28 | 1.15 | 1.26 | 0.64 | 0.46 |
| Debt-to-capital ratio | 1.78 | 1.61 | 1.78 | 1.12 | 0.69 |
| Debt-to-equity ratio | — | — | — | — | 2.23 |
| Financial leverage ratio | — | — | — | — | 4.85 |
The solvency ratios of Fair Isaac Corporation have shown some fluctuation over the past five years.
The debt-to-assets ratio has been on an upward trend, increasing from 0.46 in 2020 to 1.28 in 2024. This indicates that the company's assets are increasingly financed by debt.
Similarly, the debt-to-capital ratio has also shown an upward trend, rising from 0.69 in 2020 to 1.78 in 2024. This ratio provides insight into the proportion of a company's capital that is financed through debt, and the increasing trend suggests a higher reliance on debt financing.
The debt-to-equity ratio was not provided for the years mentioned in the table, but it is notable that in 2020 it stood at 2.23, indicating a high level of debt relative to equity.
The financial leverage ratio has also shown a significant decline over the years, dropping from 4.85 in 2020 to an unspecified value in 2024. This ratio indicates the extent to which a company is using debt to finance its operations, with higher ratios potentially indicating higher financial risk.
Overall, the increasing trend in debt-related ratios and the declining trend in leverage ratios suggest that Fair Isaac Corporation has been gradually increasing its reliance on debt financing, which may raise concerns about its financial risk and solvency position.
Coverage ratios
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 7.08 | 6.79 | 7.83 | 12.80 | 7.09 |
Fair Isaac Corporation's interest coverage ratio has displayed moderate fluctuations over the past five years, with values ranging from 6.79 to 12.80. The interest coverage ratio indicates the company's ability to make interest payments on its outstanding debt using its operating income.
The trend of the interest coverage ratio shows a peak in 2021, indicating that the company was comfortably able to cover its interest expenses with its operating profits. However, in 2023 and 2024, the ratio slightly decreased, suggesting a potential decrease in the company's ability to meet its interest obligations.
Overall, the interest coverage ratio for Fair Isaac Corporation has remained relatively healthy, staying above 5 (considered a minimum acceptable level) in all years, except in 2023 and 2024 where it dropped slightly below this threshold. Investors and creditors may view this ratio positively as it indicates the company's ability to handle its interest payments, though monitoring the trend is essential to ensure financial health and stability.