Fair Isaac Corporation (FICO)

Interest coverage

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	747,663	712,534	700,680	663,219	649,170	618,351	575,634	563,964	540,276	522,282	580,577	532,648	513,234	483,643	373,164	345,115	299,177	283,657	284,391	260,655
Interest expense (ttm)	US$ in thousands	105,638	101,427	99,104	96,908	95,546	92,082	86,258	79,572	68,967	58,617	49,914	42,646	40,092	39,534	40,739	42,050	42,177	42,202	41,090	39,844
Interest coverage		7.08	7.03	7.07	6.84	6.79	6.72	6.67	7.09	7.83	8.91	11.63	12.49	12.80	12.23	9.16	8.21	7.09	6.72	6.92	6.54

September 30, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $747,663K ÷ $105,638K
= 7.08

Fair Isaac Corporation's interest coverage ratio has shown stability and consistency over the past few years. The ratio has ranged from as low as 6.54 to as high as 12.80. It indicates that the company is capable of covering its interest expenses by a multiple of its operating income.

In recent quarters, the interest coverage ratio has been consistently above 6, which is generally considered a comfortable level for most investors and lenders. This indicates that the company is generating sufficient operating income to cover its interest obligations and is at a relatively lower risk of defaulting on its debt payments.

Notably, the interest coverage ratio peaked at 12.80 in the fourth quarter of 2021 and has been above 7 in the most recent quarters. This trend suggests that the company's profitability and cash flow generation have been strong, allowing it to comfortably meet its interest payments.

Overall, Fair Isaac Corporation's historical interest coverage ratios reflect a solid financial position in terms of its ability to service its debt obligations with its earnings.