Fair Isaac Corp. (NYSE:FICO)

Net Operating Profit After Taxes (NOPAT)

The net operating profit after taxes shows a consistent upward trend from 2019 through 2024. Starting at $238,184 thousand in 2019, the figure steadily increased each year, reaching $589,082 thousand by 2024. This represents more than a doubling of NOPAT within the five-year period, indicating strong profitability growth.

Invested Capital

Invested capital experienced minor fluctuations throughout the period. It started at $1,401,400 thousand in 2019 and increased slightly to $1,445,030 thousand in 2020. The value then declined over the next two years to a low of $1,329,445 thousand in 2022 before gradually rising again to $1,416,757 thousand in 2024. Overall, invested capital remained relatively stable with modest variation around the $1.4 billion mark.

Return on Invested Capital (ROIC)

ROIC demonstrated a significant positive trend over the analysis period. Beginning at 17% in 2019, the ratio improved steadily each year, reaching 41.58% by 2024. This substantial increase suggests enhanced efficiency in generating profit from the invested capital. The growth in ROIC aligns with the rising NOPAT figures while the invested capital base remained relatively stable, highlighting improved capital utilization.

Summary

Overall, the data indicates that the company has been successful in increasing profitability and improving returns on invested capital over the analyzed years. The steady rise in NOPAT combined with a stable invested capital base contributed to continuous improvements in ROIC, reflecting efficient management and operational performance. No significant capital investment fluctuations were observed, suggesting the profit growth was primarily driven by operational enhancements.

The examined financial indicators exhibit notable trends over the six-year period, reflecting enhanced operational efficiency and profitability.

Operating Profit Margin (OPM)

The operating profit margin shows a consistent upward trend, increasing from 22.57% in 2019 to 44.29% in 2024. This indicates progressively improved profitability from core operations, with the margin nearly doubling over the period. The steady rise suggests effective cost management and/or increased revenue generation per unit of cost.

Turnover of Capital (TO)

The turnover of capital ratio also increases steadily, moving from 0.83 in 2019 to 1.22 in 2024. This trend implies enhanced asset efficiency, with the company generating higher revenues relative to its invested capital. An increasing TO ratio typically signals better utilization of assets over time.

1 – Effective Cash Tax Rate (CTR)

The complement of the effective cash tax rate (1 – CTR) shows a decline from 90.32% in 2019 down to a low of 71.26% in 2023, followed by a slight recovery to 76.68% in 2024. This pattern signals an increasing effective tax rate during the middle years, which may reflect changes in tax policies or less favorable tax planning, before partially easing in the final year.

Return on Invested Capital (ROIC)

Return on invested capital displays a marked improvement, rising from 17% in 2019 to 41.58% in 2024. The growth in ROIC closely aligns with gains in both operating margin and capital turnover, underscoring the company’s success in generating higher returns on capital investments. The steep increase particularly after 2020 highlights significant enhancements in capital efficiency and profitability.

In summary, the company demonstrates strong upward trends in profitability and capital efficiency metrics over the analyzed timeframe, though it experiences some volatility in the tax rate impact. The combined improvements in operating profit margin and asset turnover underpin the notable rise in overall return on invested capital.

Net Operating Profit Before Taxes (NOPBT)

The net operating profit before taxes shows a consistent upward trend over the six-year period. Starting at 263,703 thousand US dollars in 2019, there is a notable increase each year, reaching 768,262 thousand US dollars by 2024. This represents a nearly threefold increase, indicating substantial growth in operating profitability.

Adjusted Revenues

Adjusted revenues have also exhibited steady growth throughout the period. From 1,168,285 thousand US dollars in 2019, revenues increased gradually each year to 1,734,500 thousand US dollars by 2024. This reflects a consistent expansion in the company’s top line, with particularly significant increases seen between 2022 and 2024.

Operating Profit Margin (OPM)

The operating profit margin has improved considerably over the years. Beginning at 22.57% in 2019, the margin experienced a steady rise to 44.29% by 2024. A significant jump occurred between 2020 and 2021, where the margin increased from 24.46% to 38.57%, indicating enhanced operational efficiency or improved cost management. Margins have stabilized at a high level from 2022 onward, reflecting sustained profitability improvements.

Summary and Insights

Overall, the data reveals strong growth in both revenues and operating profits, supported by improving operating margins. The substantial increase in the operating profit margin suggests effective management of operating expenses relative to revenue growth. The company has demonstrated a positive trajectory in profitability and operational efficiency, with no signs of decline or volatility in the measured metrics. This trend suggests a solid financial performance and an efficient scaling of the business during the period under review.

The data reveals a consistent upward trend in adjusted revenues over the six-year period, increasing from approximately $1.17 billion in 2019 to $1.73 billion in 2024. This growth indicates a steady expansion in the company's revenue-generating capacity. The increase accelerates notably from 2022 onward, suggesting enhanced operational performance or market conditions favoring revenue growth.

Invested capital exhibits more variability, peaking in 2020 at about $1.45 billion, followed by a decline through 2022 to approximately $1.33 billion. Subsequently, invested capital slightly recovers, reaching around $1.42 billion by 2024. This fluctuation might reflect strategic capital allocation decisions or changes in asset base and investment intensity during the period.

The turnover of capital ratio, which measures the efficiency of capital utilization, improves steadily each year, rising from 0.83 in 2019 to 1.22 in 2024. This upward trajectory suggests that the company increasingly generates higher revenues per unit of invested capital, reflecting enhanced operational efficiency or asset management.

Revenue Trends

Continuous revenue growth with an acceleration from 2022 onwards indicating improved revenue performance.

Invested Capital Patterns

Initial increase in capital investment in 2020, followed by a reduction until 2022, then moderate recovery towards 2024, signaling tactical investment adjustments.

Capital Turnover Ratio

Progressive improvement in capital turnover, demonstrating increased efficiency in generating revenues from invested capital over time.

Cash Operating Taxes

Cash operating taxes show a general upward trend from 2019 to 2024. Starting at 25.5 million US dollars in 2019, there was a moderate increase through 2020, followed by a substantial jump in 2021. The amount peaked in 2023 at approximately 192 million US dollars before slightly decreasing to 179 million in 2024, indicating some stabilization at a higher level compared to earlier years.

Net Operating Profit Before Taxes (NOPBT)

NOPBT increased steadily over the six-year period. Beginning with 263.7 million US dollars in 2019, the figure saw consistent annual growth, reaching 768.3 million US dollars in 2024. The most significant growth rates appear between 2020 and 2021, and again from 2022 to 2023. This trend reflects a strengthening operating profitability before tax expenses.

Effective Cash Tax Rate (CTR)

The effective cash tax rate fluctuated during the examined period. Initially at 9.68% in 2019, it gradually increased to around 19% in both 2021 and 2022, followed by a marked spike to 28.74% in 2023. In 2024, the tax rate decreased to 23.32%, suggesting some variability in tax expense relative to operating profit. Despite this variability, the overall trend is an upward movement from 2019 to 2024, indicating a higher proportion of taxes paid on operating profit in more recent years.

Summary Insights

The data reveals an overall positive performance in terms of operating profit growth. However, this has been accompanied by a rising tax burden, both in cash taxes paid and effective tax rates, especially notable from 2021 onward. The slight reduction in tax rate in 2024 may reflect changes in tax planning or regulatory impacts. The combination of higher profits and increasing tax payments illustrates the company's expanding scale and the evolving tax environment impacting its financial obligations.