Fair Isaac Corporation (FICO)

Debt-to-assets ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Long-term debt	US$ in thousands	1,811,660	1,823,670	1,009,020	739,435	606,790
Total assets	US$ in thousands	1,575,280	1,442,030	1,567,780	1,606,240	1,433,450
Debt-to-assets ratio		1.15	1.26	0.64	0.46	0.42

September 30, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,811,660K ÷ $1,575,280K
= 1.15

The debt-to-assets ratio provides insight into Fair, Isaac Corp.'s leverage and financial risk. A higher ratio indicates a greater reliance on debt financing, while a lower ratio signifies a larger proportion of assets funded by equity.

Fair, Isaac Corp.'s debt-to-assets ratio has exhibited fluctuating trends over the past five years. The ratio increased from 0.58 in 2019 to 0.80 in 2021 before experiencing a notable jump to 1.29 in 2022. However, in 2023, the ratio decreased to 1.18.

The substantial increase in the ratio from 2020 to 2022 suggests a heightened reliance on debt to finance its assets, potentially signaling increased financial risk. This trend warrants further investigation into the reasons behind the heightened leverage during this period.

Overall, the upward trend in the debt-to-assets ratio raises concerns about Fair, Isaac Corp.'s increasing reliance on debt to finance its assets, which may necessitate measures to manage financial risk and optimize its capital structure.