Fair Isaac Corp. (NYSE:FICO) 

The analysis of the financial data reveals several key trends over the periods presented.

Return on Assets (ROA)

The ROA shows a clear upward trend starting from 13.4% in late 2019. From this point, it increases steadily, reaching a peak of approximately 31.89% by early 2025. This consistent improvement suggests enhanced asset efficiency and better profitability derived from the company’s asset base over time.

Financial Leverage

Financial leverage demonstrates a fluctuating pattern between 2018 and early 2021, starting at 5.73 and decreasing to approximately 4.85 by the end of 2020. It then spikes to 12.73 by March 2021, indicating a significant increase in reliance on debt or borrowed capital at that time. Data beyond this point is not available, limiting further analysis on recent leverage trends.

Return on Equity (ROE)

ROE displays significant volatility and growth from late 2019 to early 2021. The ratio climbs sharply from 66.3% to an exceptionally high figure of nearly 293% by September 2021. This dramatic increase could be associated with changes in financial leverage or profitability dynamics during this period. However, no data is available beyond this date to determine if this level is sustainable or an anomaly.

Overall, the data reflect a strengthening profitability position, evidenced by rising ROA and ROE metrics, with a notable spike in financial leverage that may have amplified returns on equity. The missing data in some periods calls for cautious interpretation of leverage and ROE beyond early 2021.

The financial metrics exhibit distinct trends over the observed periods.

Net Profit Margin

Starting from the earliest available data in the fourth quarter of 2019, net profit margin shows a generally upward trend with some fluctuations. The margin improved from 16.56% in that quarter, reaching a peak of 31.52% in the third quarter of 2021. Following this, it experienced a slight decline but remained robust above 26%, demonstrating overall strong profitability. Towards the most recent quarters, the margin consistently hovers around 29%-31%, indicating maintained profit efficiency relative to revenues.

Asset Turnover

The asset turnover ratio shows a gradual and steady increase across the timeframe starting from the fourth quarter of 2019. Initially at 0.81, the ratio dips slightly before consistently rising to reach a peak of 1.04 in the third quarter of 2024. This suggests improving efficiency in generating revenue from assets, reflecting enhanced operational productivity and asset utilization over time.

Financial Leverage

The financial leverage ratio displays a more volatile pattern. Beginning at 5.73 in the earliest quarter, it decreases over successive quarters to a low of 4.85 in the third quarter of 2020, before spiking sharply to 12.73 in the second quarter of 2021. After this peak, no further data is provided, but the earlier fluctuations indicate changes in the company’s reliance on debt relative to equity. The spikes suggest periods of increased borrowing or changes in capital structure.

Return on Equity (ROE)

ROE shows significant variability in the limited data available. From 66.3% in the fourth quarter of 2019, it rose sharply to an extraordinary 292.77% by the third quarter of 2021. This volatility implies large swings in profitability relative to shareholders’ equity, possibly influenced by the dramatic changes in financial leverage and net profit margin. The extreme peak may be indicative of leverage effects or extraordinary income recognition during the period.

In summary, the company demonstrates improving operational efficiency and profitability over time, as evidenced by increasing asset turnover and net profit margin. However, financial leverage and ROE indicate some volatility and possible risk related to capital structure and income variability during the available periods.

The financial data reveals several key trends and patterns across the analyzed periods.

Tax Burden

The tax burden ratio, available from late 2019 onwards, shows an initial increase from 0.89 to a peak of 0.96 by September 2019. Subsequently, it gradually declines, stabilizing around 0.78 to 0.8 in more recent quarters up to early 2025. This indicates a moderate reduction in tax charges relative to pre-tax income over time.

Interest Burden

The interest burden ratio displays a steady rise from 0.84 in late 2019 to a peak of approximately 0.92 around September to December 2020. After reaching this level, a slight downward trend follows, maintaining a range between 0.85 and 0.86 in the most recent periods. This suggests a consistent but slightly improving ability to cover interest expenses through operating income.

EBIT Margin

There is a pronounced upward trend in EBIT margin, increasing from around 22% in late 2019 to a peak near 43-44% by late 2024 and early 2025. Notably, there was significant margin expansion from 26% in early 2020 to nearly 39% by the end of 2020, followed by steady growth thereafter. This improvement reflects enhanced profitability from core operations.

Asset Turnover

The asset turnover ratio starts near 0.81 in late 2019, experiences minor fluctuations around the 0.8–0.85 range through 2020, and then shows a clear upward trend in subsequent years, reaching a peak of approximately 1.04 by mid-2024. This increase suggests more efficient use of assets to generate revenue over time.

Financial Leverage

Financial leverage exhibits volatility with recorded values from the end of 2018 through early 2021. It initially decreases from about 5.73 to 4.95 until late 2019, spikes to 7.25 in early 2020, drops back to around 4.85–4.87 in late 2020, then sharply rises to 12.73 by early 2021. This fluctuation indicates varying degrees of debt usage or equity changes impacting leverage, but data beyond early 2021 is unavailable for further interpretation.

Return on Equity (ROE)

ROE shows impressive growth from 66.3% in late 2019 to an extraordinary 292.77% by mid-2021, reflecting exceptional return generation for shareholders during this period. The absence of data beyond mid-2021 precludes trend analysis after that point, but the sharp increase suggests remarkable profitability combined with leverage effects during these quarters.

Overall, the company demonstrates improving operational efficiency and profitability as evidenced by rising EBIT margins and asset turnover ratios. The tax and interest burdens show stable or slightly improving trends. While financial leverage fluctuated significantly until early 2021, the subsequent lack of data limits conclusions on leverage impact after this period. The exceptional ROE figures up to mid-2021 highlight strong shareholder value creation driven by operational gains and leverage.

The net profit margin demonstrates a generally upward trend from the end of 2018 through early 2025. Starting with an initial reported value of 16.56% in December 2018, the margin increases steadily over the subsequent quarters, reaching a peak of 31.52% in September 2021. Although some fluctuations occur thereafter, the margin stabilizes around the high twenties to low thirties percentile range, showing consistent strong profitability through March 2025 at 31.36%.

The asset turnover ratio exhibits a gradual but consistent improvement over the same period. Beginning at 0.81 in December 2018, it fluctuates slightly in the early years but generally trends upwards, reaching 1.04 in June 2024. This suggests enhanced efficiency in utilizing assets to generate sales. By the end of the observed period in March 2025, the ratio remains robust at 1.00, indicating sustained operational effectiveness.

Return on assets (ROA) also follows a similarly positive trajectory. Initially noted at 13.4% at the end of 2018, ROA increases steadily with notable acceleration from 2020 onward, culminating in a value of 31.89% in June 2024. A minor dip to 31.44% in March 2025 is observed but does not materially detract from the overall upward trend. This improvement reflects enhanced profitability relative to asset base over the examined periods.

Overall, the data points to a pattern of improving financial performance marked by increasing net profit margins, greater asset utilization efficiency, and higher returns on assets. The company's financial metrics suggest strengthening profitability and operational efficiency throughout the reported time frame.

Tax Burden

The tax burden ratio shows a generally high level since it begins from 0.89 and rises to a peak of 0.96 by the third quarter of 2020. After this peak, the ratio trends downward gradually, fluctuating around the 0.78 to 0.82 range from late 2021 through early 2025. This pattern suggests some initial increase in the proportion of income retained after tax, followed by a period of moderate stabilization.

Interest Burden

The interest burden ratio starts at 0.84 in late 2019 and displays a gradual increase through early 2021, reaching a high point of 0.92. Thereafter, it trends downward slightly, stabilizing around 0.85 to 0.86 through the end of the period in early 2025. The trend indicates a moderate improvement in the company’s ability to cover interest expenses initially, followed by consistent maintenance of this level.

EBIT Margin

EBIT margin exhibits a significant upward trend over the period. Beginning at approximately 22% in late 2019, it rises steadily, reaching 35.66% by late 2020 and continuing to increase into the 40-44% range from 2021 onward. This consistent margin improvement reflects enhanced operational profitability and improved cost management over multiple quarters.

Asset Turnover

Asset turnover starts near 0.81 and remains relatively stable with minor fluctuations until mid-2020. Subsequently, it shows a slow but steady increase, reaching 1.04 in mid-2024. This trend reflects an improving efficiency in generating revenue from assets, suggesting enhanced asset utilization.

Return on Assets (ROA)

The ROA progressively increases throughout the observed period, from around 13-14% in late 2019 to over 31% by early 2025. This strong upward trajectory indicates that the company has significantly improved its effectiveness in generating profits from its asset base. This improvement correlates with both the rising EBIT margin and increasing asset turnover.

Overall Analysis

The financial ratios collectively suggest a company achieving sustained operational improvement and enhanced profitability over the years. Both EBIT margin and ROA exhibit marked growth, supported by gradual improvements in asset turnover. Meanwhile, the company maintains relatively stable tax and interest burdens, indicating consistent management of tax obligations and financing costs. The trends imply strengthened earnings quality and asset productivity, positioning the company favorably in terms of financial performance.

The analysis of the financial ratios over the reported periods reveals several notable trends in the profitability and expense structure.

Tax Burden

The tax burden ratio begins at 0.89 in the initial recorded period and peaks at 0.96 shortly thereafter, indicating relatively high retention of earnings after tax in the early stages. It then demonstrates a gradual decline, stabilizing near the range of 0.78 to 0.82 in the later periods. This suggests a slight increase in the effective tax rate or changes in tax benefits over time.

Interest Burden

The interest burden ratio shows a moderate upward trend early on, rising from 0.84 to around 0.92, which implies improving coverage of interest expenses by earnings before interest and taxes. However, from the later periods, this ratio slightly falls and stabilizes around 0.85 to 0.86, suggesting a relatively stable and manageable interest cost burden over the most recent periods.

EBIT Margin

There is a clear and strong positive trend in the EBIT margin, starting near 22% and following a mostly consistent increase up to above 44% in the most recent quarters. This notable improvement suggests enhanced operational efficiency or increased profitability from core business activities over time. The EBIT margin more than doubles, reflecting an effective control of operating expenses relative to revenues or potentially higher revenue quality.

Net Profit Margin

The net profit margin also exhibits a significant upward trend, improving from approximately 16.5% to over 31% near the end of the series. This increase, while somewhat smoother than the EBIT margin, indicates growing profitability after all expenses, including taxes and interest. The margin experiences a few periods of slight decline but maintains an overall robust upward trajectory, confirming strong bottom-line improvements.

In summary, the company shows enhanced profitability both at the EBIT and net profit levels across the periods observed. Despite minor fluctuations, tax and interest burdens remain relatively stable after some initial variability, suggesting controlled external expenses. The upward trends in margins highlight improved operational performance and effective cost management contributing to stronger earnings generation.