Fair Isaac Corp. (NYSE:FICO) 

Total Asset Turnover

The reported total asset turnover exhibited a gradual increase from 0.81 in 2019 and 2020 to 1.00 by 2024, indicating an improvement in the efficiency of asset utilization over the period. The adjusted figures show a similar but slightly stronger upward trend, rising from 0.76 in 2019 to 1.06 in 2024, which suggests that adjustments made to the data reveal even greater efficiency gains.

Current Ratio

The reported current ratio showed variability but generally improved from 0.93 in 2019 to 1.62 in 2024, signaling an enhanced short-term liquidity position. This trend is more pronounced in the adjusted current ratio, which increased from 1.21 in 2019 to 2.79 in 2024, suggesting that, after adjustments, the company’s ability to cover its short-term liabilities with current assets strengthened substantially throughout the period.

Debt to Equity Ratio

Reported and adjusted debt to equity ratios were only available for 2019 and 2020, both showing a decline from 2.87 to 2.54 (reported) and from 2.30 to 2.07 (adjusted), indicating a reduction in reliance on debt relative to equity during these years.

Debt to Capital Ratio

This ratio shows a rising trend from 0.74 in 2019 to 1.77 in 2024 (reported), with adjusted figures reflecting a similar pattern, increasing from 0.70 to 1.64 across the same timeframe. The increase above 1.0 after 2020 reflects an elevated proportion of debt in the company’s capital structure, implying higher leverage and potential increases in financial risk.

Financial Leverage

Data for financial leverage is limited to 2019 and 2020, showing a decrease from 4.95 to 4.85 (reported) and from 3.78 to 3.53 (adjusted). This decline suggests a slight improvement in the capital structure with reduced leverage during these two years.

Net Profit Margin

The reported net profit margin experienced significant growth, climbing from 16.56% in 2019 to 29.86% in 2024, reflecting enhanced profitability. Adjusted net profit margins follow a comparable trend, although with slightly more fluctuation, rising from 16.23% to 29.66% over the same period, confirming consistent improvement in operational efficiency and cost management.

Return on Equity (ROE)

ROE data is only reported for 2019 and 2020, showing high levels at 66.3% and 71.41% respectively, with adjusted figures at 46.94% and 55.33%. The high ROE indicates strong profitability relative to shareholder equity during these years, although no data is available for subsequent periods to assess sustainability.

Return on Assets (ROA)

The reported ROA showed a clear upward trend from 13.4% in 2019 to 29.85% in 2024, indicating improving efficiency in asset utilization to generate profits. Adjusted ROA values, while slightly lower at the start, reflect a similar trajectory, increasing from 12.42% to 31.41%, suggesting robust advancement in overall asset profitability.

Revenue Trends

Revenues have demonstrated a consistent upward trend over the six-year period. Starting from approximately 1.16 billion US dollars in 2019, there has been steady growth each year, reaching about 1.72 billion US dollars by 2024. This reflects a sustained positive trajectory in the company’s ability to generate sales.

Total Assets Evolution

Total assets initially increased from around 1.43 billion US dollars in 2019 to a peak above 1.60 billion in 2020. A decline was observed thereafter, dropping to approximately 1.44 billion in 2022, followed by a moderate recovery to about 1.72 billion in 2024. The adjusted total assets exhibit a similar pattern with a peak in 2020, followed by a decline in 2022 and a gradual rebound thereafter.

Asset Turnover Ratios

The reported total asset turnover ratio remained stable at 0.81 for the years 2019 and 2020, then slightly increased to 0.84 in 2021. A more pronounced improvement is noted from 2021 to 2024, reaching a ratio of 1.00 by 2024. This suggests improving efficiency in using assets to generate revenues over time.

Analyzing the adjusted total asset turnover ratio, a similar trend is evident, rising from 0.76 in 2019 to 1.06 in 2024. The ratio surpassing 1.0 in recent years indicates enhanced asset utilization efficiency, with the company generating more than one dollar of revenue per dollar of adjusted assets.

Adjusted Versus Reported Metrics

Adjusted revenues and adjusted total assets show consistent growth patterns that closely mirror reported figures, with adjusted revenues slightly higher across all periods. The adjusted metrics provide a perspective of operational performance excluding certain factors, and the upward trajectory in adjusted total asset turnover ratios reinforces the narrative of improved asset management efficiency.

Overall Financial Performance Insights

The data indicate that the company has steadily increased its revenue base while improving the efficiency of its asset utilization. Although total assets fluctuated, the company’s ability to convert these assets into revenue has strengthened notably, as illustrated by rising asset turnover ratios. This suggests effective management strategies aimed at optimizing asset productivity and growing sales concurrently over the observed period.

Current Assets

Current assets exhibited an overall increasing trend from 2019 to 2024, starting at approximately 456 million USD and rising to over 617 million USD. After peaking in 2021 at around 551 million USD, there was a dip in 2022, followed by a rebound and steady growth through 2024.

Current Liabilities

Current liabilities showed a notable decline from 2019 to 2020, dropping from roughly 491 million USD to about 415 million USD. This was followed by an increase in 2021 to approximately 559 million USD, after which liabilities decreased sharply in 2022 to around 331 million USD. From 2022 onwards, current liabilities increased slightly but remained lower than the initial levels in 2019.

Reported Current Ratio

The reported current ratio moved upward over the period, starting below 1.0 at 0.93 in 2019, indicating potential liquidity challenges at that time. It improved significantly in 2020 to 1.29, declined slightly in 2021 to 0.99, then increased substantially from 2022 with values reaching 1.62 by 2024. This pattern demonstrates a strengthening of short-term liquidity over the period, especially after 2021.

Adjusted Current Assets

Adjusted current assets followed a similar but slightly higher pattern compared to reported current assets. Starting at about 458 million USD in 2019, they increased steadily with minor fluctuations, reaching approximately 624 million USD in 2024. This adjustment suggests a more favorable asset base than initially reported.

Adjusted Current Liabilities

Adjusted current liabilities were consistently lower than reported current liabilities throughout the period. Beginning at approximately 378 million USD in 2019, they decreased sharply through 2022, reaching around 211 million USD. After 2022, there was a mild increase, settling near 223 million USD in 2024. This indicates that the adjusted liabilities reflect a less burdensome short-term obligation environment over time.

Adjusted Current Ratio

The adjusted current ratio was markedly higher than the reported ratio each year, beginning at 1.21 in 2019 and increasing steadily to 2.79 in 2024. There was a notable jump in 2022 to 2.31, indicating a strong enhancement of liquidity when considering adjustments. This steady improvement indicates robust short-term financial health and a comfortable coverage of liabilities by adjusted current assets.

Summary of Trends and Insights

The data reveal improved liquidity and financial stability over the six-year period. Although current liabilities fluctuated, the broader trend was a reduction in reported and adjusted liabilities post-2021, while assets generally grew. The divergence between reported and adjusted metrics suggests that certain adjustments significantly enhance the perception of liquidity and financial strength. The rising adjusted current ratio, particularly its steep increase after 2021, highlights increasingly favorable short-term solvency conditions, potentially reflecting effective management of working capital and liabilities.

The financial data reveals significant shifts in the capital structure over the observed periods.

Total Debt

Total debt shows a consistent upward trend, rising from approximately 830 million US dollars in September 2019 to over 2.2 billion US dollars by September 2024. This more than doubling of debt indicates increasing leverage.

Stockholders’ Equity (Deficit)

Initially positive at around 290 million US dollars in 2019, stockholders' equity turns negative starting from the fiscal year ended September 30, 2021, with the deficit growing deeper to nearly -963 million US dollars by September 2024. This shift from positive to significantly negative equity signals deteriorating net asset value and suggests accumulated losses or other equity reductions.

Reported Debt to Equity Ratio

The reported debt to equity ratio was provided only for 2019 and 2020, showing a slight decline from 2.87 to 2.54, reflecting somewhat lower leverage relative to equity during those years. However, with equity turning negative subsequently, this ratio is no longer meaningful or reported for later years.

Adjusted Total Debt

Adjusted total debt follows a similar increasing pattern as the total debt, rising from about 928 million US dollars in 2019 to approximately 2.25 billion US dollars by 2024. The adjusted figures are slightly higher than the reported debt, suggesting certain debt adjustments or inclusions beyond the reported amounts.

Adjusted Stockholders’ Equity (Deficit)

The adjusted equity also transitions from a positive 404 million US dollars in 2019 to negative territory starting in 2021, reaching a deficit of nearly -883 million US dollars by 2024. This mirrors the trend in reported equity but indicates that the adjustments do not change the overall negative equity position significantly.

Adjusted Debt to Equity Ratio

Provided only for 2019 and 2020, the adjusted debt to equity ratio decreases from 2.3 to 2.07, indicating slightly improved leverage relative to adjusted equity during that timeframe. Similar to the reported ratio, this measure is not reported for later periods, likely due to the equity deficits making the ratio non-calculable or not meaningful.

Overall, the enterprise demonstrates a marked increase in indebtedness alongside a pronounced deterioration in equity position, with stockholders' equity turning significantly negative from 2021 onwards. These trends reflect heightened financial risk and leverage, which could impact the company's financial stability and creditworthiness if such patterns persist. The absence of debt to equity ratios in the later years aligns with the negative equity values that render traditional leverage metrics less informative.

Total Debt

The total debt has exhibited a consistently increasing trend over the examined periods. Starting at approximately 830 million in 2019, it rose steadily each year, reaching nearly 2.22 billion by 2024. This represents more than a doubling of total debt over five years, indicating a growing reliance on debt financing.

Total Capital

Total capital showed moderate fluctuations, initially increasing from about 1.12 billion in 2019 to 1.17 billion in 2020, then declining to around 1.05 billion by 2022. Subsequently, total capital experienced a recovery to approximately 1.26 billion in 2024. Overall, capital levels remain relatively stable with some volatility but do not reflect the same consistent growth as total debt.

Reported Debt to Capital Ratio

The reported debt to capital ratio increased significantly over the period. Beginning at 0.74 in 2019, it slightly decreased to 0.72 in 2020 but escalated to a peak of 1.76 in 2022. Although it modestly declined to 1.59 in 2023, it rose again to 1.77 in 2024. This suggests that debt levels have outpaced the growth of capital, indicating increased financial leverage and potentially higher financial risk.

Adjusted Total Debt

Adjusted total debt follows a trend similar to reported total debt, increasing from approximately 928 million in 2019 to 2.25 billion in 2024. The adjusted figures also reflect the consistent and pronounced rise in debt obligations across the years, reinforcing the pattern of growing indebtedness.

Adjusted Total Capital

Adjusted total capital has fluctuated over the periods, starting at about 1.33 billion in 2019, peaking in 2020 around 1.39 billion, and then declining to roughly 1.23 billion in 2022 before regaining some ground to approximately 1.37 billion by 2024. These movements suggest some variability in capital structure, but no clear upward or downward trend over the long term.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio increased notably from 0.70 in 2019 to 1.64 in 2024. It peaked at 1.56 in 2022, decreased to 1.46 in 2023, and then increased again in 2024. This pattern parallels the reported debt to capital ratio, indicating that the company’s leverage has risen substantially, which may imply greater reliance on debt relative to the capital base when considering adjusted values.

Total Assets

Total assets demonstrated a fluctuating yet overall upward trend over the periods. Beginning at approximately 1.43 billion US dollars in 2019, assets increased notably to around 1.61 billion in 2020. A slight decline occurred in 2021 and 2022, reaching just over 1.44 billion, followed by a recovery and subsequent growth in 2023 and 2024, concluding at roughly 1.72 billion. This pattern suggests periodic asset adjustments but an underlying long-term expansion.

Stockholders’ Equity (Deficit)

The stockholders’ equity values showed significant volatility and a marked deterioration starting from 2021. Initial positive equity of 289.8 million in 2019 increased slightly to 331.1 million in 2020. However, from 2021 onwards, equity sharply fell into deficit territory, with a negative value of -110.9 million which deepened further to -801.9 million in 2022. Although there was some mitigation in 2023 (-688.0 million), the deficit intensified again to -962.7 million by 2024. This declining trend indicates sustained financial challenges affecting net assets.

Reported Financial Leverage

The reported financial leverage ratio was available only for 2019 and 2020, showing a slight decrease from 4.95 to 4.85. This minor reduction suggests a marginally lower reliance on debt relative to equity during that time; however, subsequent years lack data for analysis.

Adjusted Total Assets

The adjusted total assets followed a similar trajectory to the total assets but with less pronounced volatility. Starting at 1.53 billion in 2019, adjusted assets hovered near 1.60 billion in 2020 before experiencing slight decreases in 2021 and 2022. There was a recovery trend through 2023 and 2024, ending at approximately 1.64 billion. This stabilization indicates that adjustments to asset valuation smooth out fluctuations experienced in the raw totals.

Adjusted Stockholders’ Equity (Deficit)

Adjusted equity initially remained positive with 404.0 million in 2019 and 451.9 million in 2020 but suffered a drastic decline in 2021 to a near break-even level of -8.7 million. This deterioration deepened substantially in the next two years, with deficits of -683.0 million in 2022 and -598.9 million in 2023, and reached -882.5 million in 2024. The adjustment did not alleviate the equity deficit trend observed in the reported figures, reflecting persistent underlying financial pressures.

Adjusted Financial Leverage

Available data for 2019 and 2020 shows a decrease in adjusted financial leverage from 3.78 to 3.53, suggesting slightly improved capitalization or reduced leverage in the early years. Data for subsequent years is unavailable.

Summary of Financial Position Trends

The overall asset base experienced growth over the five-year span, though with periods of contraction. Conversely, stockholders' equity moved from positive to significantly negative territory starting in 2021, indicating declining net worth and potential solvency concerns. Despite minor improvements in leverage ratios early on, the lack of later data and prevailing deficits imply increased financial risk. The adjusted figures corroborate the reported data, reinforcing the view of deteriorating equity despite relatively stable asset levels. These patterns highlight substantial challenges in maintaining positive equity despite asset growth.

Net Income

Over the six-year period, net income exhibited a generally upward trend, increasing from approximately 192 million US dollars in 2019 to over 512 million US dollars in 2024. A notable surge occurred between 2020 and 2021, where net income rose by nearly 66%, followed by a slight decline in 2022 before continuing to increase in the subsequent years.

Revenues

Revenues steadily increased throughout the period, starting at around 1.16 billion US dollars in 2019 and reaching approximately 1.72 billion US dollars in 2024. The growth was consistent each year, with a slightly accelerated pace in the last two years, indicating a strengthening top-line performance.

Reported Net Profit Margin

The reported net profit margin showed significant improvement, moving from 16.56% in 2019 to nearly 30% in 2024. The margin peaked in 2021 at close to 30%, dipped modestly in 2022, and then gradually recovered, suggesting enhanced profitability efficiency over time despite some fluctuations.

Adjusted Net Income

Adjusted net income followed a similar trend to reported net income, with a substantial increase from approximately 190 million US dollars in 2019 to over 514 million in 2024. There was a peak in 2021, followed by a decline in 2022, then a recovery through 2023 and 2024, reflecting adjustments that moderate the fluctuations seen in reported figures.

Adjusted Revenues

Adjusted revenues rose consistently from about 1.17 billion US dollars in 2019 to 1.73 billion US dollars in 2024, mirroring the trend observed in reported revenues but with slightly smoother growth. The increase in adjusted revenues underlines sustained expansion of the company's operational scale.

Adjusted Net Profit Margin

The adjusted net profit margin increased from 16.23% in 2019 to nearly 30% by 2024. The margin displayed a notable peak in 2021 at approximately 29%, followed by a dip in 2022 to 24.44%, before rising again in the following years. This pattern suggests that while the company encountered some challenges impacting profitability in 2022, overall efficiency and profitability improved substantially through 2024.

Net Income

The net income exhibits a generally strong upward trend from September 2019 through September 2024. Starting at $192,124 thousand in 2019, it increased consistently, reaching $512,811 thousand by 2024. The most notable growth occurred between 2020 and 2021, with a significant jump from approximately $236 million to $392 million. Although there was a slight decrease in 2022, the upward trend resumed, resulting in the highest net income in 2024.

Stockholders’ Equity (Deficit)

Stockholders' equity shows a markedly different pattern. Initially positive in 2019 and 2020 at $289,767 thousand and $331,082 thousand respectively, it turned negative starting in 2021. The equity deficit deepened further in subsequent years, peaking at -$962,679 thousand in 2024. The substantial and growing negative equity suggests accumulated losses, significant write-downs, or other impacts negatively affecting shareholder value during these years.

Reported Return on Equity (ROE)

Reported ROE was stable at high levels in 2019 and 2020, recorded at 66.3% and 71.41% respectively. After 2020, no reported ROE figures are provided, likely due to the transition to negative equity, which complicates the meaningful calculation or interpretation of this ratio.

Adjusted Net Income

The adjusted net income follows a similar positive trend to net income, starting at $189,642 thousand in 2019 and gradually increasing over the years to $514,447 thousand in 2024. Adjustments appear to slightly increase reported earnings in some years, reflecting possibly the exclusion of non-recurring or non-operating items to better reflect operational profitability.

Adjusted Stockholders’ Equity (Deficit)

Adjusted stockholders’ equity also shifts from positive to negative but shows smaller deficits compared to the unadjusted figures. Starting at $404,027 thousand in 2019 and $451,857 thousand in 2020, it moves into negative territory in 2021 with a deficit of -$8,718 thousand and then deteriorates sharply, reaching -$882,529 thousand in 2024. This adjustment reduces the magnitude of deficit relative to the unadjusted figures but does not change the overall negative trend.

Adjusted Return on Equity (ROE)

Adjusted ROE is reported only for 2019 and 2020, showing values of 46.94% and 55.33%, respectively. Similar to the reported ROE, no adjusted values are provided after 2020, likely due to the negative equity values that impair the calculation and interpretation of these ratios.

Summary of Financial Trends

The company has demonstrated strong and growing profitability as evidenced by the rising net income and adjusted net income figures from 2019 through 2024. However, this profitability exists alongside a worsening equity position, which has shifted substantially into deficit territory from 2021 onwards. The sharp decline in stockholders’ equity, both reported and adjusted, suggests underlying financial challenges such as accumulated losses from previous periods, asset impairments, or other balance sheet adjustments that reduce shareholder equity.

The high and positive ROE figures for the early years (2019 and 2020) are no longer reported beyond 2020 likely due to the negative equity balances, which invalidate the metric. This constraint highlights that despite growing earnings, the company’s capital structure and equity base have been under significant stress.

Net Income

Net income exhibited a consistent upward trend over the six-year period, rising from $192,124 thousand in 2019 to $512,811 thousand in 2024. The increases were steady, with a particularly notable jump between 2020 and 2021 and continued growth thereafter, indicating improving profitability.

Total Assets

Total assets fluctuated moderately during the period, starting at $1,433,448 thousand in 2019, peaking at $1,606,240 thousand in 2020, dipping in subsequent years, and then increasing again to $1,717,884 thousand by 2024. Overall, assets showed modest growth but with some volatility, suggesting variations in asset management or investment levels.

Reported Return on Assets (ROA)

The reported ROA demonstrated a clear and consistent increase across the years, growing from 13.4% in 2019 to 29.85% in 2024. This trend indicates enhanced efficiency in generating income from the asset base, more than doubling over the six years.

Adjusted Net Income

Adjusted net income also showed a positive trend, increasing from $189,642 thousand in 2019 to $514,447 thousand in 2024. It closely parallels the net income figures, confirming overall profitability improvements while accounting for adjustments that may normalize or exclude certain items.

Adjusted Total Assets

Adjusted total assets followed a similar pattern to total assets, starting at $1,527,306 thousand in 2019, declining slightly through 2022, then rising again to $1,637,825 thousand in 2024. The slight variations suggest adjustments are made that moderately reduce the asset base compared to reported figures.

Adjusted Return on Assets (ROA)

Adjusted ROA rose steadily from 12.42% in 2019 to 31.41% in 2024, mirroring the improvement seen in the reported ROA. The adjusted ROA consistently remained slightly lower than the reported ROA until 2023, after which it surpassed the reported figure, indicating improved operational profitability when adjustments are factored in.