Fair Isaac Corporation (FICO)

Financial leverage ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Total assets	US$ in thousands	1,575,280	1,442,030	1,567,780	1,606,240	1,433,450
Total stockholders’ equity	US$ in thousands	-687,990	-801,947	-110,942	331,082	289,767
Financial leverage ratio		—	—	—	4.85	4.95

September 30, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,575,280K ÷ $-687,990K
= —

The financial leverage ratio for Fair, Isaac Corp. was not available for the years 2023 and 2022. However, for the years 2021, 2020, and 2019, the financial leverage ratios were 4.85, 4.95, and respectively. The trend indicates a decrease in the financial leverage ratio over the three-year period. A high financial leverage ratio suggests that a company is using more debt in its capital structure, which can magnify returns in good times but also increase the risk of financial distress in bad times. The decreasing trend in the financial leverage ratio may imply that the company has been gradually reducing its reliance on debt to finance its operations. This may be viewed positively by investors and creditors as it indicates a potential improvement in the company's overall financial risk profile. However, it's important to consider other financial metrics and industry benchmarks to gain a comprehensive understanding of the company's financial position and risk management.