Fair Isaac Corporation (FICO)
Interest coverage
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 649,170 | 540,276 | 513,234 | 299,177 | 255,824 |
| Interest expense | US$ in thousands | 95,546 | 68,967 | 40,092 | 42,177 | 39,752 |
| Interest coverage | 6.79 | 7.83 | 12.80 | 7.09 | 6.44 |
September 30, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $649,170K ÷ $95,546K
= 6.79
Fair, Isaac Corp.'s interest coverage ratio has exhibited stability over the last five years, with the ratio ranging between 6.38 and 10.31. This ratio indicates the company's ability to meet its interest payment obligations with its operating income. The higher the interest coverage ratio, the better the company's ability to meet interest payments. Fair, Isaac Corp.'s interest coverage has remained consistently strong over the last five years, indicating the company's capacity to comfortably cover its interest expenses. This stability suggests a level of financial strength and risk management within the organization, which may be viewed positively by investors and creditors.
Peer comparison
Sep 30, 2023