Fair Isaac Corporation (FICO)

Fair, Isaac Corp.'s solvency ratios provide insight into its ability to meet its long-term financial obligations. The debt-to-assets ratio has shown an increasing trend over the past five years, rising to 1.18 in 2023 from 0.58 in 2019. This suggests a higher proportion of the company's assets being financed by debt. Similarly, the debt-to-capital ratio has followed a similar pattern, reaching 1.59 in 2023 from 0.74 in 2019, indicating an increased reliance on debt for capital funding.

The absence of data for the debt-to-equity ratio suggests limited information for evaluating the company's leverage through equity financing. However, the trend in the financial leverage ratio reflects a consistent increase, reaching 4.85 in 2020, signaling a substantial reliance on debt to finance the company's operations.

Overall, the increasing trends in the debt-to-assets and debt-to-capital ratios indicate a higher level of financial risk as the company has taken on more debt relative to its assets and capital. This heightened leverage may raise concerns about the company's ability to service its debt obligations and maintain sustainable financial health in the long run.

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Coverage ratios

The interest coverage ratio measures a company's ability to meet its interest payment obligations. Fair, Isaac Corp.'s interest coverage has varied over the past five years, ranging from 6.38 to 10.31. A higher interest coverage ratio indicates that the company is more capable of meeting its interest expenses from its operating income. The downward trend from 10.31 in 2021 to 6.71 in 2023 suggests a potential decrease in the company's ability to cover its interest expenses. This declining trend warrants further investigation to assess the company's ability to service its debt and manage its financial obligations.