Analysis of Debt
Total Debt (Carrying Amount)
Fair Isaac Corp., balance sheet: debt
US$ in thousands
Based on: 10-K (reporting date: 2024-09-30), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30).
Total debt and finance lease liabilities have experienced a substantial upward trajectory over the observed six-year period, increasing from 830,214 thousand US dollars in 2019 to 2,219,428 thousand US dollars by September 30, 2024. This represents a growth of approximately 167% in the total carrying amount of debt, with the most aggressive expansion occurring between 2020 and 2022.
- Long-Term Debt Obligations
- Long-term debt, excluding current maturities, serves as the primary driver of the overall increase in liabilities. This component grew from 606,790 thousand US dollars in 2019 to 2,194,021 thousand US dollars in 2024. A notable surge is observed between 2021 and 2022, where the balance rose from 1,009,018 thousand US dollars to 1,823,669 thousand US dollars, suggesting a period of significant capital raising or strategic financing.
- Current Maturities on Debt
- Short-term debt obligations have exhibited high volatility with a general downward trend in recent years. After peaking at 250,000 thousand US dollars in 2021, current maturities decreased significantly to 15,000 thousand US dollars by September 30, 2024. This decline, contrasted with the rise in long-term debt, indicates a shift toward extending the maturity profile of the company's debt obligations.
- Finance Lease Liabilities
- Finance lease liabilities, both current and non-current, represent a minimal fraction of the total debt structure. However, an increase is noted in the 2024 figures, with current lease liabilities rising to 3,144 thousand US dollars and non-current lease liabilities increasing to 7,263 thousand US dollars, reflecting a slight expansion in leased assets.
The overall financial profile indicates a strategic shift toward long-term leverage. While total liabilities have grown significantly, the concentration of debt has moved away from immediate maturities toward long-term instruments, thereby reducing the short-term liquidity pressure associated with debt repayment.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Total Debt (Fair Value)
| Sep 30, 2024 | |
|---|---|
| Selected Financial Data (US$ in thousands) | |
| Revolving line of credit | 210,000) |
| Term Loan | 708,750) |
| 2010 Senior Notes | —) |
| 2018 Senior Notes | 399,500) |
| 2019 Senior Notes and 2021 Senior Notes | 864,000) |
| Finance lease liabilities | 10,407) |
| Total debt and finance lease liabilities (fair value) | 2,192,657) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.99 |
Based on: 10-K (reporting date: 2024-09-30).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt and finance lease liabilities: 5.19%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 6.40% | 210,000) | 13,432) | |
| 6.34% | 258,750) | 16,415) | |
| 6.28% | 450,000) | 28,264) | |
| 5.25% | 400,000) | 21,000) | |
| 4.00% | 350,000) | 14,000) | |
| 4.00% | 550,000) | 22,000) | |
| 5.52% | 10,407) | 574) | |
| Total | 2,229,157) | 115,686) | |
| 5.19% | |||
Based on: 10-K (reporting date: 2024-09-30).
1 US$ in thousands
2 Weighted-average interest rate = 100 × 115,686 ÷ 2,229,157 = 5.19%