Fair Isaac Corp. (NYSE:FICO)

The financial data reveals several notable trends in the composition and valuation of goodwill and intangible assets over the analyzed periods.

Goodwill

Goodwill demonstrates a generally declining trend from 2019 to 2022, decreasing from 803,542 thousand USD in 2019 to a low of 761,067 thousand USD in 2022. However, a moderate recovery occurs in the subsequent years, rising to 773,327 thousand USD in 2023 and further to 782,752 thousand USD in 2024. This pattern indicates some impairment or revaluation events followed by stabilization and modest growth.

Completed Technology

The value of completed technology assets shows a decline from 82,724 thousand USD in 2019 to 67,760 thousand USD in 2022, followed by a slight increase to 69,706 thousand USD in 2023. The data for 2024 is missing. This decline may indicate amortization or disposal of these assets, while the slight recovery could suggest new additions or revaluations.

Customer Contracts and Relationships

There is a sharp decrease in the value of customer contracts and relationships from 30,583 thousand USD in 2019 to only 3,000 thousand USD by 2022, where it remains constant through 2023. Missing data for 2024 restricts further analysis, but the substantial drop suggests write-offs or expiries of contracts.

Trade Names and Non-compete Agreements

Trade names are recorded only in 2019 with a minor value of 150 thousand USD and disappear in subsequent periods, while non-compete agreements hold steady at 350 thousand USD in the first two years before becoming absent. These minor assets appear to have been fully amortized or disposed of over the period.

Intangible Assets, Gross Carrying Amount

The gross carrying amount of intangible assets decreases consistently from 113,807 thousand USD in 2019 to 70,760 thousand USD in 2022, with a slight uptick to 72,706 thousand USD in 2023 but missing data for 2024. This overall decline reflects amortization and potential asset disposals with a minor reversal or acquisition in 2023.

Accumulated Amortization

Accumulated amortization displays a continuously decreasing (more negative) trend, moving from -99,668 thousand USD in 2019 to -71,789 thousand USD in 2023. This indicates consistent amortization expenses that have reduced the net book value of intangible assets over the periods covered.

Intangible Assets, Net

The net intangible assets decrease sharply from 14,139 thousand USD in 2019 to 2,017 thousand USD in 2022, further falling to 917 thousand USD in 2023. This confirms that amortization and impairments largely outweigh additions or revaluations. Data for 2024 is not available, but the downward trend suggests a diminishing net intangible asset base.

Goodwill and Intangible Assets (Combined)

The combined total of goodwill and intangible assets follows a declining trend from 817,681 thousand USD in 2019 to 763,084 thousand USD in 2022. Subsequently, it rebounds slightly to 774,244 thousand USD in 2023 and 782,752 thousand USD in 2024. The pattern highlights the dominant effect of goodwill stability or growth offsetting the diminishing net intangible assets.

In summary, the data shows a general decrease in intangible asset values and net carrying amounts driven by amortization and possible disposals or impairments. Goodwill remains the most significant and more stable component, which experiences minor fluctuations but maintains overall strength. The net effect is a moderate decline in total goodwill and intangible assets through 2022, followed by modest recovery through 2024. These observations suggest a focus on managing goodwill closely while intangible assets undergo amortization without significant reinvestment or revaluation within the periods available.

The financial data reveals distinct trends in both reported and goodwill-adjusted figures over the six-year period.

Total Assets

Reported total assets generally increased from 1,433,448 thousand US dollars in 2019 to 1,717,884 thousand US dollars in 2024, peaking slightly in 2020 before experiencing a dip in 2022 and then recovering thereafter. This shows a pattern of moderate growth with some volatility in the middle years.

Adjusted total assets follow a similar growth trajectory but start at a significantly lower base, increasing steadily from 629,906 thousand US dollars in 2019 to 935,132 thousand US dollars in 2024. After a peak in 2020, there is a decline in 2022, followed by recovery in subsequent years. The gap between reported and adjusted total assets remains substantial throughout the period, indicating significant goodwill and intangible asset impacts.

Stockholders’ Equity

Reported stockholders’ equity exhibits a positive value in 2019 and 2020, growing from 289,767 thousand US dollars to 331,082 thousand US dollars. However, starting in 2021, there is a sharp decline into negative territory, reaching -962,679 thousand US dollars by 2024. This indicates a deteriorating equity position in reported terms over the latter half of the period.

Adjusted stockholders’ equity remains negative and shows a worsening trend throughout the entire timeline. Beginning at -513,775 thousand US dollars in 2019, the deficit fluctuates slightly but overall expands in magnitude, reaching -1,745,431 thousand US dollars in 2024. This reflects substantial and increasing goodwill and intangible asset impairments or adjustments negatively impacting the equity base.

In summary, the reported total assets demonstrate moderate growth with some instability, while adjusted total assets reveal a lower base with steady recovery after a mid-period decline. The stockholders’ equity figures, both reported and adjusted, display significant deterioration after 2020, with adjusted equity consistently reflecting a deeper deficit. The divergence between reported and adjusted measures highlights the material effect of goodwill and intangible asset considerations on the company’s financial stability.

The financial data presents a clear pattern of performance metrics over multiple years, with certain measures reported consistently and others adjusted for goodwill in earlier periods only. The analysis focuses on asset turnover, financial leverage, return on equity (ROE), and return on assets (ROA).

Total Asset Turnover

The reported total asset turnover exhibits a steady increase from 0.81 in 2019 and 2020 to 1.0 by 2024, indicating improved efficiency in using assets to generate sales over time. In contrast, the adjusted total asset turnover, which accounts for goodwill and is reported only until 2024, shows a peak at 2.02 in 2022, followed by a gradual decline to 1.84 in 2024. This pattern suggests that after a period of optimal asset utilization adjusted for goodwill, there was a slight reduction in asset turnover efficiency when adjustments are considered.

Financial Leverage

Reported financial leverage data is available only for 2019 and 2020, showing a minor decrease from 4.95 to 4.85, reflecting a subtle reduction in the use of debt relative to equity. No adjusted financial leverage data is reported, limiting further analysis on leverage trends adjusted for goodwill.

Return on Equity (ROE)

ROE is reported only for 2019 and 2020, with a rise from 66.3% to 71.41%, indicating increasing profitability for shareholders during this period. There is no adjusted ROE data available, which restricts analysis of ROE excluding goodwill effects or beyond 2020.

Return on Assets (ROA)

Reported ROA demonstrates a consistent upward trend from 13.4% in 2019 to 29.85% in 2024, reflecting enhanced operational profitability relative to total assets. Adjusted ROA values, accounting for goodwill, start higher at 30.5% in 2019 and increase markedly to a peak of 54.85% in 2022, slightly decreasing thereafter but maintaining strong levels above 53%. This indicates that upon removing goodwill, asset profitability is substantially higher, and despite slight fluctuations, operational efficiency remains robust.

Overall, the data reveal improving asset utilization and profitability over the years with some fluctuations in adjusted figures, particularly in total asset turnover. The absence of adjusted leverage and ROE data for most periods limits full comparative analysis. Nevertheless, the upward trends in both reported and adjusted ROA underscore effective management of asset-based returns, while the steady ascent in reported asset turnover signals continued operational efficiency gains.

The analysis of the financial data over the six-year period reveals several notable trends in both reported and goodwill-adjusted figures.

Total Assets (Reported vs. Adjusted)

Reported total assets show a general upward trend from 1,433,448 thousand USD in 2019 to 1,717,884 thousand USD in 2024, despite some fluctuations. There was a peak in 2020 at 1,606,240 thousand USD, followed by a dip in 2022 to 1,442,034 thousand USD, and a subsequent rise through 2023 and 2024.

Adjusted total assets exhibit a somewhat similar but more volatile pattern, increasing from 629,906 thousand USD in 2019 to 935,132 thousand USD in 2024. In this case, the assets decreased significantly in 2022 to 680,967 thousand USD after growing steadily in previous years, but rebounded strongly in 2023 and 2024.

Total Asset Turnover (Reported vs. Adjusted)

Reported total asset turnover remained stable at 0.81 in 2019 and 2020, then showed a steady increase to reach 1.00 by 2024. This indicates improved efficiency in utilizing reported assets to generate revenue over time.

Adjusted total asset turnover, however, shows a declining trend from 1.84 in 2019 to 1.63 in 2020, then a gradual recovery and a peak of 2.02 in 2022. After 2022, it declined again to 1.84 by 2024. This suggests fluctuations in operational efficiency when goodwill is excluded, with a notable improvement in 2022 but some reduction thereafter.

Overall, the reported data demonstrate steady growth in asset base and improving asset utilization ratios, indicating enhanced operational performance. The adjusted data reveal more pronounced volatility in asset values and turnover ratios, reflecting fluctuations in the company's core asset efficiency once goodwill adjustments are taken into account. The divergence in trends between reported and adjusted figures highlights the material impact of goodwill on the financial profile and operational metrics over the analyzed period.

The data indicates several notable trends in the financial position over the periods from September 30, 2019 to September 30, 2024.

Total Assets

Reported total assets increased from approximately 1.43 billion US dollars in 2019 to about 1.72 billion in 2024, reflecting a generally upward trend despite a dip in 2021 and 2022. Adjusted total assets, which exclude goodwill, also increased over the period but showed more volatility, falling notably in 2022 before rising again by 2024.

Stockholders’ Equity (Deficit)

Reported stockholders’ equity demonstrated significant deterioration starting in 2021, shifting from positive equity values in 2019 and 2020 to substantial negative equity through 2024. The deficit deepened markedly, reaching nearly -963 million US dollars by 2024. Adjusted stockholders’ equity followed a similar negative trajectory over the entire period, with deficits worsening progressively each year and exceeding -1.7 billion US dollars by 2024, indicating substantial erosion of net assets excluding goodwill.

Financial Leverage

Reported financial leverage was available only for 2019 and 2020, showing a slight decrease from 4.95 to 4.85. No subsequent data were provided for leverage ratios, thus making it impossible to analyze leverage trends beyond 2020. Adjusted financial leverage data were not reported for any period.

Overall, the data reveal increasing total asset values but accompanied by increasingly negative equity positions, both reported and adjusted for goodwill. This suggests growing liabilities or write-downs impacting net asset values. The lack of leverage data after 2020 limits analysis of debt usage or capital structure developments in recent years.

The financial data reveals significant fluctuations and negative trends in the reported and adjusted stockholders’ equity of the company over the examined periods. Notably, the reported stockholders’ equity exhibited a positive and increasing pattern from September 2019 to September 2020, rising from approximately $290 million to $331 million. However, from September 2021 onward, there is a marked deterioration, with the equity turning negative and continuing to decline steeply through to September 2024, reaching nearly -$963 million.

When considering the adjusted stockholders’ equity, which presumably accounts for goodwill adjustments and other factors, the values are consistently negative throughout all periods and show a worsening trend. Starting at around -$514 million in September 2019, the deficit deepens to nearly -$1.75 billion by September 2024, indicating a substantial and continuous erosion of the company's net asset base after adjustments.

The discrepancy between reported and adjusted equity highlights the impact of the adjustments applied, which exacerbate the equity deficit. While the reported equity briefly showed positive values in the initial years, the adjusted figures suggest underlying issues that are not visible on a reported basis. This could imply significant impairment or write-downs related to goodwill or other intangible assets that reduce the company's true equity position.

Regarding profitability, the reported return on equity (ROE) was high and increased slightly from 66.3% in 2019 to 71.41% in 2020, indicating strong profitability relative to shareholders’ equity in those years. However, there is no ROE data available after 2020, likely due to the negative equity figures which make ROE calculations not meaningful or indicative. The absence of adjusted ROE data further limits insight into profitability when adjusted equity figures are considered.

Overall, the trends point to a challenging financial position deteriorating over time, particularly after 2020, with large and increasing equity deficits when adjusted for goodwill and possibly other intangible asset impairments. The previously strong return on equity cannot be assessed beyond 2020 due to negative shareholder equity, and the persistent negative adjusted equity suggests ongoing financial and perhaps operational challenges that merit close monitoring.

Total Assets

The reported total assets experienced an overall upward trend, increasing from approximately 1.43 billion USD in 2019 to about 1.72 billion USD in 2024. There was a slight decrease observed in 2022, but the general direction remains positive over the years.

In contrast, the adjusted total assets, which subtract goodwill, showed more variability and a smaller asset base, starting at around 630 million USD in 2019 and rising to approximately 935 million USD in 2024. Despite a dip in 2022, the adjusted assets rebounded strongly by 2024, indicating some volatility but an overall growth pattern similar to the reported figures.

Return on Assets (ROA)

The reported ROA demonstrated a consistent and steady increase throughout the period, moving from 13.4% in 2019 to nearly 30% in 2024. This suggests improving efficiency and profitability relative to reported asset levels.

The adjusted ROA, calculated on assets excluding goodwill, showed significantly higher values compared to the reported ROA, starting at 30.5% in 2019 and rising to about 54.8% by 2024. Although there was a slight fluctuation with a minor dip observed in 2023, the trend clearly indicates a strong and improving return on the adjusted asset base over time.

Overall Insights

The analysis reveals that while the company's asset base expanded moderately, the return on both reported and adjusted assets improved considerably, indicating enhanced operational efficiency and profitability. The disparity between reported and adjusted ROA highlights the substantial impact goodwill has on the asset base and returns calculation, with the adjusted figures providing a higher and arguably more accurate view of asset profitability.