Return on Equity (ROE)
since 2005
Calculation
Fair Isaac Corp., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income1 | ÷ | Stockholders’ equity (deficit)1 | |
|---|---|---|---|---|---|---|---|
| Sep 30, 2024 | — | = | 100 | × | 512,811) | ÷ | (962,679) |
| Sep 30, 2023 | — | = | 100 | × | 429,375) | ÷ | (687,990) |
| Sep 30, 2022 | — | = | 100 | × | 373,541) | ÷ | (801,947) |
| Sep 30, 2021 | — | = | 100 | × | 392,084) | ÷ | (110,942) |
| Sep 30, 2020 | 71.41% | = | 100 | × | 236,411) | ÷ | 331,082) |
| Sep 30, 2019 | 66.30% | = | 100 | × | 192,124) | ÷ | 289,767) |
| Sep 30, 2018 | 54.00% | = | 100 | × | 142,415) | ÷ | 263,737) |
| Sep 30, 2017 | 30.07% | = | 100 | × | 128,256) | ÷ | 426,537) |
| Sep 30, 2016 | 24.49% | = | 100 | × | 109,448) | ÷ | 446,828) |
| Sep 30, 2015 | 19.79% | = | 100 | × | 86,502) | ÷ | 436,998) |
| Sep 30, 2014 | 20.87% | = | 100 | × | 94,879) | ÷ | 454,614) |
| Sep 30, 2013 | 16.98% | = | 100 | × | 90,095) | ÷ | 530,677) |
| Sep 30, 2012 | 19.39% | = | 100 | × | 92,004) | ÷ | 474,406) |
| Sep 30, 2011 | 15.37% | = | 100 | × | 71,562) | ÷ | 465,494) |
| Sep 30, 2010 | 13.57% | = | 100 | × | 64,457) | ÷ | 474,914) |
| Sep 30, 2009 | 10.85% | = | 100 | × | 65,102) | ÷ | 600,269) |
| Sep 30, 2008 | 14.94% | = | 100 | × | 83,952) | ÷ | 561,941) |
| Sep 30, 2007 | 18.48% | = | 100 | × | 104,650) | ÷ | 566,314) |
| Sep 30, 2006 | 13.44% | = | 100 | × | 103,486) | ÷ | 770,028) |
| Sep 30, 2005 | 16.71% | = | 100 | × | 134,548) | ÷ | 805,094) |
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), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30), 10-K (reporting date: 2007-09-30), 10-K (reporting date: 2006-09-30), 10-K (reporting date: 2005-09-30).
1 US$ in thousands
The financial performance from 2005 to 2024 is characterized by a significant divergence between increasing profitability and a diminishing equity base, culminating in a transition to a stockholders' deficit.
- Net Income Trends
- Profitability experienced an initial period of volatility between 2005 and 2010, with net income declining from 134.5 million USD to 64.5 million USD. However, a consistent upward trajectory began in 2011, with earnings growing steadily to 236.4 million USD by 2019. A period of accelerated growth occurred between 2020 and 2024, where net income more than doubled, reaching a peak of 512.8 million USD.
- Stockholders' Equity Evolution
- A long-term downward trend in stockholders' equity is observed. From 2005 to 2017, equity decreased from 805.1 million USD to 426.5 million USD. A more precipitous decline occurred after 2017, leading to the first instance of negative equity in 2021 at -110.9 million USD. This deficit expanded significantly in subsequent years, reaching -962.7 million USD by 2024.
- Return on Equity (ROE) Analysis
- ROE remained relatively stable between 10% and 21% from 2005 to 2014. Starting in 2015, there was a sharp escalation in ROE, rising from 24.5% to 71.4% by 2020. This rapid increase was driven by the dual effect of rising net income and a contracting equity denominator. From 2021 onward, ROE is no longer reported, which corresponds with the shift to a negative equity position, rendering the traditional ROE metric mathematically non-meaningful.
The data indicates a strategic shift in capital structure. The combination of record-high net income and a deepening equity deficit suggests an aggressive return of capital to shareholders or a significant change in leverage, which artificially inflated ROE prior to the emergence of the stockholders' deficit.
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Comparison to Competitors
Fair Isaac Corp., ROE, long-term trends, comparison to competitors
| Fair Isaac Corp. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | Datadog Inc. | International Business Machines Corp. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sep 30, 2024 | — | 25.68% | 39.42% | 144.96% | 22.58% | 6.77% | 22.06% | 16.07% | 32.83% | 120.26% | 9.24% | 49.86% | 6.93% | 14.83% | 25.17% | 17.09% |
| Sep 30, 2023 | — | 26.75% | 32.86% | 28.39% | 30.58% | 2.40% | 33.29% | 13.81% | 35.09% | 792.45% | 6.04% | 25.15% | 0.36% | 22.69% | 20.01% | -6.57% |
| Sep 30, 2022 | — | 31.11% | 33.85% | -10.13% | 30.93% | -3.56% | 7.47% | 12.57% | 43.68% | — | -14.57% | -127.14% | 2.48% | 6.46% | 17.85% | 0.65% |
| Sep 30, 2021 | — | 30.25% | 32.59% | 1.66% | 25.39% | -1.99% | 30.38% | 20.89% | 43.15% | 262.43% | -22.71% | -78.63% | 9.81% | 6.22% | 14.31% | -8.62% |
| Sep 30, 2020 | 71.41% | 30.05% | 39.66% | — | 23.69% | -2.56% | 27.14% | 35.76% | 37.43% | 83.94% | -76.61% | -24.23% | 0.37% | 4.18% | 13.54% | -19.33% |
| Sep 30, 2019 | 66.30% | 33.17% | 28.03% | — | 47.03% | -2.14% | 45.25% | 41.53% | 38.35% | 50.87% | — | -5.16% | 7.11% | 29.45% | 13.04% | -21.36% |
| Sep 30, 2018 | 54.00% | 39.17% | 27.67% | — | 26.84% | — | 51.96% | 51.44% | 20.03% | 8.37% | — | -15.30% | 1.36% | -2.40% | 12.43% | -20.33% |
| Sep 30, 2017 | 30.07% | 38.50% | 20.02% | — | 20.63% | — | 32.70% | 71.71% | 29.29% | 17.33% | — | -28.52% | 2.40% | -25.53% | 4.17% | -35.11% |
| Sep 30, 2016 | 24.49% | 54.42% | 15.74% | — | 27.38% | — | 65.07% | 84.32% | 23.33% | 18.82% | — | -28.60% | -0.95% | -116.76% | 8.35% | -25.52% |
| Sep 30, 2015 | 19.79% | 49.78% | 8.99% | — | 18.34% | — | 92.48% | 15.65% | 15.23% | 20.42% | — | -33.81% | -6.61% | -35.01% | 7.21% | -22.02% |
| Sep 30, 2014 | 20.87% | 51.32% | 3.96% | — | 11.92% | — | 101.30% | 29.47% | 24.59% | 23.37% | — | -48.33% | -7.64% | -41.85% | 8.48% | -14.53% |
| Sep 30, 2013 | 16.98% | 66.16% | 4.31% | — | 14.21% | — | 72.32% | 24.30% | 27.69% | 24.47% | — | -10.74% | -11.67% | -18.70% | 8.89% | -20.12% |
| Sep 30, 2012 | 19.39% | 61.59% | 12.49% | — | 48.07% | — | 88.04% | 28.86% | 25.58% | 22.85% | — | 0.32% | -0.73% | -15.34% | 7.29% | — |
| Sep 30, 2011 | 15.37% | 58.72% | 14.40% | — | 17.57% | — | 78.73% | 24.24% | 40.55% | 21.49% | — | — | 5.05% | — | 10.53% | — |
| Sep 30, 2010 | 13.57% | 62.79% | 14.92% | — | 45.74% | — | 64.36% | 20.35% | 40.63% | 19.92% | — | — | 7.73% | — | 11.29% | — |
| Sep 30, 2009 | 10.85% | 55.08% | 7.90% | — | -138.29% | — | 59.31% | 17.49% | 36.83% | 22.29% | — | — | 6.46% | — | 9.09% | — |
| Sep 30, 2008 | 14.94% | 66.59% | 19.77% | — | -1,818.25% | — | 91.60% | 23.00% | 48.73% | 23.98% | — | — | 4.06% | — | 12.43% | — |
| Sep 30, 2007 | 18.48% | 60.25% | 15.57% | — | 14.24% | — | 36.59% | 21.62% | 45.23% | 25.26% | — | — | 0.17% | — | 9.08% | — |
| Sep 30, 2006 | 13.44% | 51.38% | 9.82% | — | 8.39% | — | 33.30% | 23.99% | 31.42% | 22.52% | — | — | 14.50% | — | 2.13% | — |
| Sep 30, 2005 | 16.71% | 55.42% | 32.34% | — | 2.67% | — | 23.97% | 22.51% | 25.47% | 26.63% | — | — | 5.06% | — | -1.27% | — |
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), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30), 10-K (reporting date: 2007-09-30), 10-K (reporting date: 2006-09-30), 10-K (reporting date: 2005-09-30).
Comparison to Sector (Software & Services)
Fair Isaac Corp., ROE, long-term trends, comparison to sector (software & services)
| Fair Isaac Corp. | Software & Services | |
|---|---|---|
| Sep 30, 2024 | — | 28.81% |
| Sep 30, 2023 | — | 28.49% |
| Sep 30, 2022 | — | 30.78% |
| Sep 30, 2021 | — | 35.91% |
| Sep 30, 2020 | 71.41% | 30.34% |
| Sep 30, 2019 | 66.30% | 35.56% |
| Sep 30, 2018 | 54.00% | 20.20% |
| Sep 30, 2017 | 30.07% | 23.83% |
| Sep 30, 2016 | 24.49% | 26.25% |
| Sep 30, 2015 | 19.79% | 23.04% |
| Sep 30, 2014 | 20.87% | 28.09% |
| Sep 30, 2013 | 16.98% | 31.71% |
| Sep 30, 2012 | 19.39% | 32.66% |
| Sep 30, 2011 | 15.37% | 38.82% |
| Sep 30, 2010 | 13.57% | 37.89% |
| Sep 30, 2009 | 10.85% | 35.98% |
| Sep 30, 2008 | 14.94% | 44.03% |
| Sep 30, 2007 | 18.48% | 35.48% |
| Sep 30, 2006 | 13.44% | 28.87% |
| Sep 30, 2005 | 16.71% | 24.91% |
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), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30), 10-K (reporting date: 2007-09-30), 10-K (reporting date: 2006-09-30), 10-K (reporting date: 2005-09-30).
Comparison to Industry (Information Technology)
Fair Isaac Corp., ROE, long-term trends, comparison to industry (information technology)
| Fair Isaac Corp. | Information Technology | |
|---|---|---|
| Sep 30, 2024 | — | 28.82% |
| Sep 30, 2023 | — | 31.26% |
| Sep 30, 2022 | — | 38.03% |
| Sep 30, 2021 | — | 41.64% |
| Sep 30, 2020 | 71.41% | 35.38% |
| Sep 30, 2019 | 66.30% | 35.94% |
| Sep 30, 2018 | 54.00% | 30.23% |
| Sep 30, 2017 | 30.07% | 23.19% |
| Sep 30, 2016 | 24.49% | 23.00% |
| Sep 30, 2015 | 19.79% | 25.97% |
| Sep 30, 2014 | 20.87% | 25.43% |
| Sep 30, 2013 | 16.98% | 24.73% |
| Sep 30, 2012 | 19.39% | 26.09% |
| Sep 30, 2011 | 15.37% | 29.03% |
| Sep 30, 2010 | 13.57% | 27.62% |
| Sep 30, 2009 | 10.85% | 20.05% |
| Sep 30, 2008 | 14.94% | 25.24% |
| Sep 30, 2007 | 18.48% | 23.67% |
| Sep 30, 2006 | 13.44% | 22.58% |
| Sep 30, 2005 | 16.71% | 21.92% |
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), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30), 10-K (reporting date: 2007-09-30), 10-K (reporting date: 2006-09-30), 10-K (reporting date: 2005-09-30).