Fair Isaac Corporation (FICO)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	-687,990	-801,947	-110,942	331,082	289,767
Debt-to-capital ratio		1.61	1.78	1.12	0.69	0.68

September 30, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,811,660K ÷ ($1,811,660K + $-687,990K)
= 1.61

The debt-to-capital ratio of Fair, Isaac Corp. has fluctuated over the past five years, indicating changes in the company's capital structure and leverage. In 2023, the ratio stands at 1.59, signifying that debt accounts for approximately 61.4% of the company's capital. This represents a decrease from the previous year, where the ratio was 1.76 and debt made up approximately 63.7% of the capital structure.

Compared to 2021, when the ratio was 1.10, the company has become more leveraged in 2022 and 2023. This trend suggests an increasing reliance on debt financing relative to equity. Furthermore, the significant rise in the debt-to-capital ratio from 2020 to 2021 indicates a substantial shift in the company's financing strategy.

Overall, the fluctuating debt-to-capital ratio reflects changing capital structure dynamics, implying shifts in financial risk and the company's ability to meet its obligations. Further analysis of the company's debt levels and overall financial health would be necessary to fully assess the impact of these changes.