Fair Isaac Corporation (FICO)
Interest coverage
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 747,663 | 649,170 | 540,276 | 513,234 | 299,177 |
| Interest expense | US$ in thousands | 105,638 | 95,546 | 68,967 | 40,092 | 42,177 |
| Interest coverage | 7.08 | 6.79 | 7.83 | 12.80 | 7.09 |
September 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $747,663K ÷ $105,638K
= 7.08
Fair Isaac Corporation's interest coverage ratio has shown some fluctuations over the past five years. The interest coverage ratio indicates the company's ability to meet its interest obligations with its operating income.
In September 2024, the interest coverage ratio stood at 7.08, slightly higher than the previous year's ratio of 6.79. This improvement suggests that Fair Isaac Corporation's operating income was sufficient to cover its interest expenses, although the margin of safety may not be as high as desired.
Comparing the current ratio to that of the previous years, the interest coverage ratio in 2024 is lower than the ratio in 2021, which stood at 12.80. This significant drop indicates a potential decrease in the company's ability to cover interest payments with operating income.
Overall, while Fair Isaac Corporation has maintained a reasonably healthy interest coverage ratio over the past five years, the recent slight decrease in the ratio may indicate a need for monitoring and further analysis to ensure the company's financial health and ability to meet its debt obligations.
Peer comparison
Sep 30, 2024