Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
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- Statement of Comprehensive Income
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- Analysis of Reportable Segments
- Enterprise Value to EBITDA (EV/EBITDA)
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- Operating Profit Margin since 2005
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Liquidity Ratios (Summary)
Fair Isaac Corp., liquidity ratios
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|
| Current ratio | |||||||
| Quick ratio | |||||||
| Cash ratio |
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).
- Current ratio
- The current ratio showed a fluctuating yet overall upward trend over the reported periods. It initially increased significantly from 0.93 in 2019 to 1.29 in 2020, indicating an improved liquidity position. A temporary decline followed in 2021 to 0.99, falling below the previous year's level. However, from 2021 onwards, there was a consistent increase, reaching 1.62 by 2024. This suggests progressively strengthened ability to cover short-term liabilities with current assets.
- Quick ratio
- The quick ratio also reflected a pattern similar to the current ratio, with an overall improvement over time. It rose from 0.82 in 2019 to a peak of 1.19 in 2020, dipped to 0.91 in 2021, and then steadily climbed again through the following years to 1.52 in 2024. The improvement after 2021 highlights enhanced short-term liquidity when excluding inventory, implying better quality of liquid assets to meet immediate obligations.
- Cash ratio
- The cash ratio presented a more moderate upward trend relative to the other liquidity metrics. Starting at a low of 0.22 in 2019, it increased to 0.38 in 2020, decreased slightly to 0.35 in 2021, then experienced minor fluctuations between 0.37 and 0.40 from 2022 to 2024. This suggests some stability in cash and cash equivalents relative to current liabilities, although the growth was less pronounced compared to current and quick ratios.
Current Ratio
Fair Isaac Corp., current ratio calculation, comparison to benchmarks
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current assets | |||||||
| Current liabilities | |||||||
| Liquidity Ratio | |||||||
| Current ratio1 | |||||||
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Accenture PLC | |||||||
| Adobe Inc. | |||||||
| Cadence Design Systems Inc. | |||||||
| CrowdStrike Holdings 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. | |||||||
| Current Ratio, Sector | |||||||
| Software & Services | |||||||
| Current Ratio, Industry | |||||||
| Information Technology | |||||||
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).
1 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- Current assets increased overall from 455,706 thousand US dollars in 2019 to 617,413 thousand US dollars in 2024. There was a steady rise through 2021, followed by a slight decrease in 2022, and then a resurgence in 2023 and 2024. This pattern indicates a general strengthening of liquid assets with a minor dip during the mid-period.
- Current Liabilities
- Current liabilities exhibited significant fluctuations, starting at 490,828 thousand US dollars in 2019 and decreasing sharply to 414,511 thousand in 2020. A notable increase to 559,207 thousand occurred in 2021, succeeded by a pronounced reduction in 2022 to 331,459 thousand. Liabilities then increased moderately in 2023 and 2024, ending at 380,285 thousand in the latest period. This volatility suggests dynamic management of short-term obligations.
- Current Ratio
- The current ratio showed marked improvement over the six-year span, rising from 0.93 in 2019 to 1.62 in 2024. It peaked in 2020 at 1.29, declined to near parity in 2021 at 0.99, and then progressively increased from 1.46 in 2022 to 1.62 in 2024. This upward trend indicates enhanced liquidity and a stronger ability to cover short-term liabilities with current assets over time.
Quick Ratio
Fair Isaac Corp., quick ratio calculation, comparison to benchmarks
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cash and cash equivalents | |||||||
| Accounts receivable, net | |||||||
| Total quick assets | |||||||
| Current liabilities | |||||||
| Liquidity Ratio | |||||||
| Quick ratio1 | |||||||
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Accenture PLC | |||||||
| Adobe Inc. | |||||||
| Cadence Design Systems Inc. | |||||||
| CrowdStrike Holdings 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. | |||||||
| Quick Ratio, Sector | |||||||
| Software & Services | |||||||
| Quick Ratio, Industry | |||||||
| Information Technology | |||||||
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).
1 2024 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total quick assets
- The total quick assets demonstrated a generally upward trend over the examined periods. Starting at approximately 403.9 million US dollars in 2019, the value increased significantly to 491.6 million in 2020, followed by a smaller rise to about 507.5 million in 2021. A decline occurred in 2022, with assets dropping to 455.6 million, but this was reversed in 2023 and 2024, reaching 524.7 million and 577.3 million, respectively. Overall, the quick assets grew by around 43% over the six-year span, indicating strengthened liquidity resources.
- Current liabilities
- Current liabilities exhibited more fluctuation during the period. The figure fell from roughly 490.8 million US dollars in 2019 to 414.5 million in 2020, then sharply increased to 559.2 million in 2021. A notable reduction followed in 2022, with liabilities dropping to 331.5 million, after which a moderate rise occurred over the next two years, amounting to 367.7 million in 2023 and 380.3 million in 2024. This variability suggests the company managed short-term obligations dynamically, possibly aligned with operational or strategic adjustments.
- Quick ratio
- The quick ratio, a key indicator of short-term liquidity, showed consistent improvement throughout the periods analyzed. Beginning at 0.82 in 2019, below the critical threshold of 1.0, it increased sharply to 1.19 in 2020, then declined to 0.91 in 2021. From 2022 onwards, it exhibited steady growth, reaching 1.37 in 2022, 1.43 in 2023, and 1.52 in 2024. This upward trend reflects enhanced ability to cover current liabilities with quick assets, marking a positive shift in liquidity management and financial stability over time.
Cash Ratio
Fair Isaac Corp., cash ratio calculation, comparison to benchmarks
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cash and cash equivalents | |||||||
| Total cash assets | |||||||
| Current liabilities | |||||||
| Liquidity Ratio | |||||||
| Cash ratio1 | |||||||
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Accenture PLC | |||||||
| Adobe Inc. | |||||||
| Cadence Design Systems Inc. | |||||||
| CrowdStrike Holdings 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. | |||||||
| Cash Ratio, Sector | |||||||
| Software & Services | |||||||
| Cash Ratio, Industry | |||||||
| Information Technology | |||||||
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).
1 2024 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total cash assets
- The total cash assets demonstrate an overall upward trend from 2019 through 2024, increasing from 106,426 thousand US dollars in 2019 to 150,667 thousand US dollars in 2024. Notably, there was significant growth between 2019 and 2021, peaking at 195,354 thousand US dollars in 2021, followed by a decline in 2022 to 133,202 thousand US dollars. A slight recovery is observed afterward, reaching 150,667 thousand US dollars by 2024.
- Current liabilities
- Current liabilities exhibit volatility during the same period. Starting at 490,828 thousand US dollars in 2019, there was a decline to 414,511 thousand US dollars in 2020. Subsequently, a sharp increase occurred in 2021 reaching 559,207 thousand US dollars, marking the highest value in the period. This was followed by a substantial decrease to 331,459 thousand US dollars in 2022, after which liabilities slightly increased over the next two years, ending at 380,285 thousand US dollars in 2024.
- Cash ratio
- The cash ratio indicates the company's ability to cover its current liabilities with cash and cash equivalents. This ratio improved markedly from 0.22 in 2019 to 0.38 in 2020, signaling enhanced liquidity. Despite a minor decrease to 0.35 in 2021, the ratio rose again to 0.40 in 2022. It experienced a small dip to 0.37 in 2023 but rebounded to 0.40 in 2024, maintaining a strong position compared to the beginning of the period.
- Overall analysis
- The company has shown resilience in maintaining liquidity despite fluctuations in both cash assets and current liabilities. The capacity to cover short-term obligations with available cash improved overall, as evidenced by the increase in the cash ratio from 2019 to 2024. While current liabilities fluctuated considerably, the cash asset base generally grew, contributing to the stable cash ratio during the latter years. The volatility in current liabilities combined with a relatively stable liquidity ratio suggests strategic management in balancing cash holdings against obligations.