Fair Isaac Corp. (NYSE:FICO)

Return on Assets (ROA)

The Return on Assets exhibits a clear upward trend over the observed periods. Starting at 13.4% at the end of 2019, ROA steadily increased through 2020 and 2021, reaching near 26.7% by the end of 2021. Despite some fluctuations, the upward momentum continued, with ROA stabilizing in the mid to high 20% range through 2022 and early 2023. From late 2023 to mid-2025, ROA further advanced, peaking at approximately 34% by the end of the period. This consistent improvement indicates enhanced asset efficiency and profitability.

Financial Leverage

Financial leverage data is only available for the periods from late 2019 through early 2021. Initially, leverage was moderately high at 6.41x and rose to a peak of 7.25x by the first quarter of 2020. It then declined to around 4.85x to 4.87x by the end of 2020, signaling a reduction in reliance on debt or other leveraged funding sources. However, leverage sharply increased again to 7.07x and then dramatically to 12.73x by mid-2021. Data after this point is not available, which limits the ability to assess recent leverage trends and their impact on profitability.

Return on Equity (ROE)

Return on Equity shows a highly volatile pattern during the periods for which data exists, covering late 2019 to mid-2021. The ROE started at a strong 85.92% and surged beyond 108% in the first quarter of 2020. However, it subsequently declined to approximately 71.41% by the third quarter of 2020 before rebounding to 82.68% by year-end. The most notable increase occurred in early 2021, with ROE reaching an exceptionally high 124.66%, followed by an extraordinary spike to nearly 293% by mid-2021. These sharp fluctuations suggest significant changes in equity base, profitability, or financial structuring during this period. No data is provided beyond mid-2021 to evaluate sustainability or subsequent dynamics.

The analysis of the quarterly financial metrics reveals several notable trends in profitability, efficiency, leverage, and returns over the observed periods.

Net Profit Margin (%)

The net profit margin exhibits a general upward trend from late 2019 through mid-2025. Starting at 17.31% in December 2019, the margin increases with some fluctuations, peaking around 32.8% by the end of 2025. Noteworthy is the consistent improvement observed especially from early 2020 onward, with margins predominantly remaining above 25% after 2021, indicating enhanced profitability and better cost management over time.

Asset Turnover (ratio)

Asset turnover demonstrates a gradual improvement throughout the timeline. Beginning at 0.77 in December 2019, there is a steady increase, approaching and occasionally surpassing 1.0 by late 2024 and into 2025. The increment in asset turnover suggests improved efficiency in generating revenue from the company’s asset base, indicative of better utilization of resources or revenue growth outpacing asset growth.

Financial Leverage (ratio)

Financial leverage displays considerable volatility in the earlier quarters, starting at 6.41 in December 2019, briefly rising to 7.25 and then spiking up to 12.73 during mid-2021. However, data beyond this period is unavailable, limiting further analysis. The initial high leverage levels suggest increased reliance on debt or other liabilities to finance assets, which could imply higher financial risk during these periods.

Return on Equity (ROE) (%)

ROE shows significant fluctuations with a strong upward spike in the early part of the dataset. Starting at 85.92% in December 2019, reaching a peak of 292.77% by June 2021 before data becomes unavailable. The extreme variation likely reflects the combined effects of changes in net profit margin, asset turnover, and particularly financial leverage. The absence of data post-June 2021 restricts evaluation of ROE stability or trend continuity in later periods.

In summary, the company demonstrates improving profitability and efficiency as seen in the rising net profit margin and asset turnover ratios. The earlier period is characterized by high and variable financial leverage, which correlates with volatile but notably high ROE figures until mid-2021. The lack of data beyond mid-2021 for leverage and ROE prevents definitive conclusions on capital structure and overall equity returns for the latter part of the timeline. Nonetheless, the sustained growth in profit margin and asset turnover suggests stronger operational performance ahead.

The analysis of key financial ratios over the presented quarters reveals several important trends and fluctuations.

Tax Burden

The tax burden ratio shows a declining trend from an initial value near 0.94 towards a lower level around 0.78 to 0.82 in recent periods. This indicates a reduction in the proportion of earnings paid as tax, which could suggest improved tax efficiency or favorable changes in tax policy affecting the company.

Interest Burden

The interest burden remained relatively stable throughout the periods, fluctuating narrowly between 0.85 and 0.92. This consistency suggests steady management of interest expenses relative to earnings before interest and taxes, reflecting a stable financing cost environment over time.

EBIT Margin

The EBIT margin displays a strong upward trend, beginning at about 21.79% and increasing steadily to values exceeding 46% in the latest quarter. This substantial improvement reflects enhanced operating profitability and efficiency, potentially driven by increased revenues or effective cost controls.

Asset Turnover

The asset turnover ratio shows a gradual increase from 0.77 to slightly above 1.0 in later quarters. This indicates improving efficiency in generating sales from the asset base, suggesting better utilization of resources or growth in revenue relative to asset levels.

Financial Leverage

Data on financial leverage is limited to earlier quarters, with values ranging between approximately 4.85 and 12.73. The notable spike around 12.73 suggests a period of increased use of debt financing, but the absence of later data inhibits a full understanding of leverage trends across the full timeframe.

Return on Equity (ROE)

The ROE exhibits significant volatility in the available data, initially ranging between roughly 71% and an exceptional peak near 293%, indicative of very high profitability or possible leverage effects. However, the lack of recent data impedes comprehensive assessment of the sustainability or trends in equity returns.

Overall, the company demonstrates improving operating performance marked by increasing EBIT margins and asset turnover ratios, suggesting enhanced efficiency and profitability. The steady interest burden ratio indicates stable financial costs, while a decreasing tax burden ratio points toward effective tax management strategies. However, incomplete data for financial leverage and ROE limits the ability to comment on capital structure changes and equity profitability in the most recent periods.

The analysis of the provided quarterly financial data reveals several noteworthy trends in key profitability and efficiency metrics over the period from December 2019 through June 2025.

Net Profit Margin (%)

The net profit margin exhibits a generally upward trajectory across the analyzed timeframe. Starting at 17.31% in December 2019, it experiences some fluctuations but the overall trend is positive, peaking at 32.8% by June 2025. Notable increases occur between March 2020 and September 2021, where the margin rises from 18.92% to 29.78%, indicating improving profitability. After a slight moderation around mid-2022, the margin resumes its ascent, suggesting enhanced operational efficiency and cost management in the later periods.

Asset Turnover (ratio)

The asset turnover ratio also shows a steady upward trend, increasing from 0.77 in December 2019 to 1.04 by June 2025. This progression signifies improved efficiency in utilizing assets to generate revenue. While minor fluctuations occur, the overall increase indicates that the company is leveraging its asset base more effectively over time, with the ratio crossing the 1.0 threshold in later quarters, reflecting stronger asset utilization.

Return on Assets (ROA) (%)

Return on assets demonstrates a significant enhancement over the analyzed period. Starting from 13.4% in December 2019, ROA climbs consistently with some periodic variations to reach 33.98% by June 2025. This increase reflects the combined positive effects of rising net profit margins and improving asset turnover. The growth in ROA is particularly sharp between December 2020 and March 2022, highlighting a period of robust operational performance and capital efficiency. The sustained improvement thereafter underscores ongoing gains in profitability and asset management.

In summary, the data indicates strong and continuous improvement in profitability and efficiency metrics. The steady rise in net profit margin and asset turnover contributes to a substantial increase in return on assets. This pattern suggests effective management strategies that enhance both profit generation and asset utilization over the multi-year horizon.

The analysis of the quarterly financial data reveals several important trends across key profitability and efficiency metrics.

Tax Burden

The tax burden ratio exhibits a gradual decline from 0.94 at the end of 2019 to around 0.78-0.82 in recent quarters. This decline suggests a reduction in the proportion of earnings paid as taxes over the period, potentially improving net income margins.

Interest Burden

The interest burden ratio remains relatively stable, fluctuating narrowly between 0.85 and 0.92. There is a slight improvement (decrease in interest expense relative to earnings) in the early quarters of 2021, but overall this ratio maintains consistency, indicating stable interest obligations relative to earnings before interest and taxes.

EBIT Margin

The EBIT margin shows a strong upward trend from approximately 21.79% at the end of 2019 to a high of 46.34% projected by the end of 2025. Notably, substantial gains occur during 2021, where the margin expands from around 28% to nearly 41%. This upward trajectory indicates improved operational efficiency and higher profitability at the earnings before interest and taxes level.

Asset Turnover

The asset turnover ratio improves steadily from 0.77 in late 2019 to values exceeding 1.0 by 2025, indicating better utilization of assets in generating revenue. This enhancement suggests growing efficiency in asset use to produce sales over time.

Return on Assets (ROA)

The ROA metric reflects a rising trend from 13.4% in late 2019 to an expected 33.98% by the end of 2025. The growth in ROA is supported by simultaneous improvements in both EBIT margin and asset turnover, demonstrating the combined effect of higher profitability and efficient asset use enhancing overall returns on assets.

Overall, the data reflects a trend of improving profitability and operational efficiency. The significant rise in EBIT margins paired with increased asset turnover leads to strong growth in ROA, highlighting effective management of costs, taxes, and assets. Stability in the interest burden ratio suggests consistent financing costs, while the declining tax burden contributes positively to net profitability. These trends point toward a strengthening financial performance over the observed and projected periods.

The analysis of the financial ratios over multiple quarters reveals several notable trends and patterns which provide insight into the company's profitability and financial efficiency.

Tax Burden

The tax burden ratio demonstrates a declining trend from the end of 2019 through 2025, beginning at 0.94 and decreasing to a steady level around 0.80 before further dipping slightly to approximately 0.82 in the last periods. This indicates a gradual reduction in the effective tax rate, which can positively impact the net profitability of the company as less profit is absorbed by taxes over time.

Interest Burden

The interest burden ratio shows relative stability with minor fluctuations. It started at 0.85 in December 2019, peaked near 0.92 in late 2020 and early 2021, and then stabilized around 0.85 to 0.86 for the subsequent periods. This implies that the company maintained consistent control over its interest expenses relative to earnings before interest and taxes, with minimal deterioration or improvement over the observed intervals.

EBIT Margin

There is a clear upward trajectory in the EBIT margin throughout the observation period. Beginning at 21.79% at the end of 2019, it steadily increased with some volatility, reaching over 46% by the latter part of 2025. This represents a significant enhancement in operational efficiency and profitability before interest and taxes, suggesting that the company improved its core earnings capacity substantially.

Net Profit Margin

The net profit margin follows a similar upward pattern to the EBIT margin. Starting around 17.31% in late 2019, it rose to nearly 32.8% by mid-2025. This improvement in the bottom-line profitability margin, despite some fluctuations, indicates effective management of costs and expenses, including interest and taxes, which leads to increased returns to shareholders.

In summary, the company exhibits a pattern of increasing profitability as reflected in the rising EBIT and net profit margins. Concurrently, the effective tax rate has decreased moderately, enhancing net income potential. The interest burden remained stable, indicating consistent financing costs relative to earnings. These combined effects suggest progressively stronger financial performance with operational improvements and efficient management of expenses over the stated periods.