Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Fair Isaac Corp., solvency ratios
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).
- Debt to Equity
- The debt to equity ratio showed a slight decline from 2.87 in 2019 to 2.54 in 2020. Including operating lease liabilities, the ratio increased from 2.87 to 2.83 over the same period, indicating that lease obligations had some impact on total debt relative to equity but overall remained fairly stable. Data for subsequent years is not available for this metric.
- Debt to Capital
- A significant upward trend is evident. The debt to capital ratio increased gradually from 0.74 in 2019 to 1.1 in 2021, then jumped substantially to 1.76 in 2022. Although it decreased slightly to 1.59 in 2023, it rose again to 1.77 in 2024. When operating lease liabilities are included, the pattern is similar, with slightly higher ratios each year. This suggests an increasing reliance on debt financing relative to overall capital during the observed period.
- Debt to Assets
- The ratio rose markedly from 0.58 in 2019 to 0.8 in 2021, followed by a sharp increase to 1.29 in 2022. A minor decline occurred in 2023 to 1.18, but the ratio rebounded to 1.29 in 2024. Including operating lease liabilities, the ratios are consistently marginally higher, showing a similar trend. This escalation implies growing debt levels relative to total assets, which may signal increased financial risk.
- Financial Leverage
- A slight decrease appeared from 2019 to 2020, declining from 4.95 to 4.85. Data for subsequent years is not provided. The modest decline in leverage may reflect some reduction in asset financing through liabilities during this initial period.
- Interest Coverage
- Interest coverage improved markedly from 6.44 in 2019 to a peak of 12.8 in 2021, indicating a much stronger ability to meet interest obligations from operating earnings. However, the ratio then decreased to 7.83 in 2022 and fluctuated around 6.79 to 7.08 in the following years, reflecting a reduction in interest-paying capacity from its peak but maintaining a reasonable coverage level overall.
- Fixed Charge Coverage
- This ratio followed a similar pattern to interest coverage, increasing from 4.52 in 2019 to 8.93 in 2021. Afterward, it declined steadily to 6.39 in 2022 and further to 5.94 in 2023 before a slight recovery to 6.35 in 2024. This suggests a comparable trend in the company's overall ability to cover fixed financial obligations, with a peak in 2021 and some moderation in subsequent years.
Debt Ratios
Coverage Ratios
Debt to Equity
Fair Isaac Corp., debt to equity 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 finance lease liabilities | 3,144) | —) | —) | —) | 2,186) | 1,935) | |
| Current maturities on debt | 15,000) | 50,000) | 30,000) | 250,000) | 95,000) | 218,000) | |
| Long-term debt, excluding current maturities | 2,194,021) | 1,811,658) | 1,823,669) | 1,009,018) | 739,435) | 606,790) | |
| Non-current finance lease liabilities | 7,263) | —) | —) | —) | 3,076) | 3,489) | |
| Total debt | 2,219,428) | 1,861,658) | 1,853,669) | 1,259,018) | 839,697) | 830,214) | |
| Stockholders’ equity (deficit) | (962,679) | (687,990) | (801,947) | (110,942) | 331,082) | 289,767) | |
| Solvency Ratio | |||||||
| Debt to equity1 | — | — | — | — | 2.54 | 2.87 | |
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Accenture PLC | 0.04 | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Adobe Inc. | 0.40 | 0.22 | 0.29 | 0.28 | 0.31 | 0.39 | |
| Cadence Design Systems Inc. | 0.53 | 0.19 | 0.27 | 0.13 | 0.14 | — | |
| CrowdStrike Holdings Inc. | 0.32 | 0.51 | 0.72 | 0.85 | 0.00 | — | |
| International Business Machines Corp. | 2.01 | 2.51 | 2.32 | 2.74 | 2.99 | — | |
| Intuit Inc. | 0.33 | 0.35 | 0.42 | 0.21 | 0.66 | 0.12 | |
| Microsoft Corp. | 0.29 | 0.31 | 0.39 | 0.50 | 0.62 | 0.77 | |
| Oracle Corp. | 9.98 | 84.33 | — | 16.08 | 5.93 | — | |
| Palantir Technologies Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.13 | — | |
| Palo Alto Networks Inc. | 0.19 | 1.14 | 17.51 | 5.08 | 2.80 | 0.90 | |
| Salesforce Inc. | 0.17 | 0.20 | 0.19 | 0.07 | 0.09 | — | |
| ServiceNow Inc. | 0.15 | 0.20 | 0.30 | 0.43 | 0.58 | — | |
| Synopsys Inc. | 0.00 | 0.00 | 0.00 | 0.02 | 0.03 | 0.03 | |
| Workday Inc. | 0.37 | 0.53 | 0.41 | 0.55 | 0.51 | — | |
| Debt to Equity, Sector | |||||||
| Software & Services | 0.54 | 0.64 | 0.71 | 0.83 | 0.95 | — | |
| Debt to Equity, Industry | |||||||
| Information Technology | 0.61 | 0.66 | 0.71 | 0.83 | 0.97 | — | |
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
Debt to equity = Total debt ÷ Stockholders’ equity (deficit)
= 2,219,428 ÷ -962,679 = —
2 Click competitor name to see calculations.
The financial data reveals significant changes in the company's debt structure and equity position over the analyzed periods. Total debt has shown a consistent increasing trend from US$830,214 thousand in 2019 to US$2,219,428 thousand in 2024, indicating a substantial rise in the company's leverage.
Conversely, stockholders' equity has experienced considerable deterioration. Starting at a positive balance of US$289,767 thousand in 2019, equity increased to US$331,082 thousand in 2020 but then declined drastically into negative territory from 2021 onwards. The deficit deepened from -US$110,942 thousand in 2021 to -US$962,679 thousand in 2024, suggesting worsening financial stability and a possible accumulation of losses or equity reductions.
Regarding leverage ratios, the debt to equity ratio was 2.87 in 2019 and improved slightly to 2.54 in 2020. However, the absence of this ratio for subsequent years likely reflects the complications in its calculation due to negative equity values, which render the traditional debt to equity ratio less meaningful or undefined. This shift implies a deteriorating balance sheet structure where debt significantly exceeds equity, posing potential increased risk.
- Total Debt
- Steady and pronounced increase across the reporting periods, more than doubling from 2019 to 2024.
- Stockholders’ Equity
- Characteristics include a short-term increase in 2020 followed by a persistent and increasing deficit, indicating weakening equity foundations.
- Debt to Equity Ratio
- Available data shows a moderate decrease up to 2020; later values are missing likely due to negative equity making ratio calculation and interpretation problematic.
Overall, the company appears to be increasingly reliant on debt financing while equity has deteriorated substantially, suggesting heightened financial risk and potential challenges in maintaining solvency without strategic financial restructuring or improvements in operating performance.
Debt to Equity (including Operating Lease Liability)
Fair Isaac Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current finance lease liabilities | 3,144) | —) | —) | —) | 2,186) | 1,935) | |
| Current maturities on debt | 15,000) | 50,000) | 30,000) | 250,000) | 95,000) | 218,000) | |
| Long-term debt, excluding current maturities | 2,194,021) | 1,811,658) | 1,823,669) | 1,009,018) | 739,435) | 606,790) | |
| Non-current finance lease liabilities | 7,263) | —) | —) | —) | 3,076) | 3,489) | |
| Total debt | 2,219,428) | 1,861,658) | 1,853,669) | 1,259,018) | 839,697) | 830,214) | |
| Current operating lease liabilities (included in Other accrued liabilities) | 11,555) | 16,336) | 19,369) | 22,074) | 22,787) | —) | |
| Non-current operating lease liabilities | 21,963) | 23,903) | 39,192) | 53,670) | 73,207) | —) | |
| Total debt (including operating lease liability) | 2,252,946) | 1,901,897) | 1,912,230) | 1,334,762) | 935,691) | 830,214) | |
| Stockholders’ equity (deficit) | (962,679) | (687,990) | (801,947) | (110,942) | 331,082) | 289,767) | |
| Solvency Ratio | |||||||
| Debt to equity (including operating lease liability)1 | — | — | — | — | 2.83 | 2.87 | |
| Benchmarks | |||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
| Accenture PLC | 0.15 | 0.12 | 0.15 | 0.18 | 0.21 | 0.00 | |
| Adobe Inc. | 0.43 | 0.25 | 0.33 | 0.32 | 0.35 | 0.39 | |
| Cadence Design Systems Inc. | 0.56 | 0.24 | 0.34 | 0.18 | 0.20 | — | |
| CrowdStrike Holdings Inc. | 0.34 | 0.54 | 0.76 | 0.89 | 0.00 | — | |
| International Business Machines Corp. | 2.14 | 2.66 | 2.46 | 2.92 | 3.23 | — | |
| Intuit Inc. | 0.36 | 0.39 | 0.46 | 0.25 | 0.71 | 0.12 | |
| Microsoft Corp. | 0.36 | 0.39 | 0.47 | 0.58 | 0.69 | 0.84 | |
| Oracle Corp. | 10.85 | 88.84 | — | 16.61 | 6.10 | — | |
| Palantir Technologies Inc. | 0.05 | 0.07 | 0.10 | 0.11 | 0.30 | — | |
| Palo Alto Networks Inc. | 0.27 | 1.33 | 19.12 | 5.68 | 3.16 | 0.90 | |
| Salesforce Inc. | 0.23 | 0.25 | 0.25 | 0.15 | 0.18 | — | |
| ServiceNow Inc. | 0.24 | 0.30 | 0.44 | 0.60 | 0.75 | — | |
| Synopsys Inc. | 0.08 | 0.11 | 0.12 | 0.13 | 0.14 | 0.03 | |
| Workday Inc. | 0.41 | 0.58 | 0.46 | 0.68 | 0.63 | — | |
| Debt to Equity (including Operating Lease Liability), Sector | |||||||
| Software & Services | 0.63 | 0.73 | 0.81 | 0.94 | 1.06 | — | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||||
| Information Technology | 0.67 | 0.73 | 0.77 | 0.91 | 1.04 | — | |
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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity (deficit)
= 2,252,946 ÷ -962,679 = —
2 Click competitor name to see calculations.
The financial data reveals significant changes in the company's capital structure over the observed periods.
- Total Debt (including operating lease liability)
- This metric shows a consistent and substantial increase from 830,214 thousand US dollars in September 2019 to 2,252,946 thousand US dollars in September 2024. The debt nearly tripled over five years, indicating an increasing reliance on borrowed funds or lease obligations.
- Stockholders’ Equity (Deficit)
- The equity position has deteriorated markedly. Starting with a positive equity of 289,767 thousand US dollars in September 2019, it increased slightly to 331,082 thousand US dollars in September 2020. However, thereafter equity became negative, declining from -110,942 thousand US dollars in September 2021 to a more severe deficit of -962,679 thousand US dollars in September 2024. This trend suggests growing accumulated losses or write-downs impacting net worth negatively.
- Debt to Equity Ratio (Including Operating Lease Liability)
- The ratio was reported as 2.87 in 2019 and slightly decreased to 2.83 in 2020; however, for subsequent years, this data is missing. Given the increase in total debt and the decline into negative stockholders' equity, the debt-to-equity ratio would presumably have increased substantially, reflecting a higher degree of financial leverage and potential solvency concerns.
Overall, the data illustrates an increasing financial risk profile, characterized by growing debt levels combined with a deteriorating equity base, resulting in expanded leverage that could impact the company's financial stability if not managed prudently.
Debt to Capital
Fair Isaac Corp., debt to capital 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 finance lease liabilities | 3,144) | —) | —) | —) | 2,186) | 1,935) | |
| Current maturities on debt | 15,000) | 50,000) | 30,000) | 250,000) | 95,000) | 218,000) | |
| Long-term debt, excluding current maturities | 2,194,021) | 1,811,658) | 1,823,669) | 1,009,018) | 739,435) | 606,790) | |
| Non-current finance lease liabilities | 7,263) | —) | —) | —) | 3,076) | 3,489) | |
| Total debt | 2,219,428) | 1,861,658) | 1,853,669) | 1,259,018) | 839,697) | 830,214) | |
| Stockholders’ equity (deficit) | (962,679) | (687,990) | (801,947) | (110,942) | 331,082) | 289,767) | |
| Total capital | 1,256,749) | 1,173,668) | 1,051,722) | 1,148,076) | 1,170,779) | 1,119,981) | |
| Solvency Ratio | |||||||
| Debt to capital1 | 1.77 | 1.59 | 1.76 | 1.10 | 0.72 | 0.74 | |
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Accenture PLC | 0.03 | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Adobe Inc. | 0.29 | 0.18 | 0.23 | 0.22 | 0.24 | 0.28 | |
| Cadence Design Systems Inc. | 0.35 | 0.16 | 0.21 | 0.11 | 0.12 | — | |
| CrowdStrike Holdings Inc. | 0.24 | 0.34 | 0.42 | 0.46 | 0.00 | — | |
| International Business Machines Corp. | 0.67 | 0.72 | 0.70 | 0.73 | 0.75 | — | |
| Intuit Inc. | 0.25 | 0.26 | 0.30 | 0.17 | 0.40 | 0.10 | |
| Microsoft Corp. | 0.23 | 0.24 | 0.28 | 0.33 | 0.38 | 0.43 | |
| Oracle Corp. | 0.91 | 0.99 | 1.09 | 0.94 | 0.86 | — | |
| Palantir Technologies Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.12 | — | |
| Palo Alto Networks Inc. | 0.16 | 0.53 | 0.95 | 0.84 | 0.74 | 0.47 | |
| Salesforce Inc. | 0.15 | 0.16 | 0.16 | 0.06 | 0.08 | — | |
| ServiceNow Inc. | 0.13 | 0.16 | 0.23 | 0.30 | 0.37 | — | |
| Synopsys Inc. | 0.00 | 0.00 | 0.00 | 0.02 | 0.03 | 0.03 | |
| Workday Inc. | 0.27 | 0.35 | 0.29 | 0.35 | 0.34 | — | |
| Debt to Capital, Sector | |||||||
| Software & Services | 0.35 | 0.39 | 0.42 | 0.45 | 0.49 | — | |
| Debt to Capital, Industry | |||||||
| Information Technology | 0.38 | 0.40 | 0.41 | 0.45 | 0.49 | — | |
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
Debt to capital = Total debt ÷ Total capital
= 2,219,428 ÷ 1,256,749 = 1.77
2 Click competitor name to see calculations.
- Total debt
- The total debt exhibits an increasing trend over the periods under review. It rose gradually from 830,214 thousand USD in 2019 to 839,697 thousand USD in 2020. Thereafter, a significant escalation is observed, reaching 1,259,018 thousand USD in 2021, followed by further substantial increases to 1,853,669 thousand USD in 2022, and to 1,861,658 thousand USD in 2023. The upward trajectory continued into 2024, peaking at 2,219,428 thousand USD.
- Total capital
- Total capital demonstrates variability without a clear upward or downward trend. Starting at 1,119,981 thousand USD in 2019, it increased slightly to 1,170,779 thousand USD in 2020. In 2021, a decrease to 1,148,076 thousand USD occurred, followed by a more pronounced reduction to 1,051,722 thousand USD in 2022. Subsequently, capital levels rose to 1,173,668 thousand USD in 2023 and further to 1,256,749 thousand USD in 2024. Overall, total capital fluctuated within a relatively narrow range compared to the significant increase observed in total debt.
- Debt to capital ratio
- The debt to capital ratio reflects the increasing leverage of the company over the period analyzed. The ratio decreased marginally from 0.74 in 2019 to 0.72 in 2020, suggesting a slight reduction in leverage. However, from 2021 onward, the ratio rose sharply, reaching 1.10 in 2021, indicating debt levels exceeding total capital. The leverage further intensified to 1.76 in 2022, signifying a substantial increase in borrowing relative to capital. This ratio then slightly decreased to 1.59 in 2023 but increased again to 1.77 in 2024. These figures reveal a trend of growing dependence on debt financing, with debt significantly surpassing capital in recent years.
- Summary
- The financial data illustrate a pronounced increase in total debt over the span from 2019 to 2024, accompanied by relatively stable total capital levels. This divergence has led to a marked rise in the debt to capital ratio, suggesting that the company's capital structure has become increasingly debt-heavy. The rapid escalation in debt, especially from 2021 onwards, combined with only moderate fluctuations in capital, indicates a strategic shift toward greater leverage, potentially increasing financial risk.
Debt to Capital (including Operating Lease Liability)
Fair Isaac Corp., debt to capital (including operating lease liability) 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 finance lease liabilities | 3,144) | —) | —) | —) | 2,186) | 1,935) | |
| Current maturities on debt | 15,000) | 50,000) | 30,000) | 250,000) | 95,000) | 218,000) | |
| Long-term debt, excluding current maturities | 2,194,021) | 1,811,658) | 1,823,669) | 1,009,018) | 739,435) | 606,790) | |
| Non-current finance lease liabilities | 7,263) | —) | —) | —) | 3,076) | 3,489) | |
| Total debt | 2,219,428) | 1,861,658) | 1,853,669) | 1,259,018) | 839,697) | 830,214) | |
| Current operating lease liabilities (included in Other accrued liabilities) | 11,555) | 16,336) | 19,369) | 22,074) | 22,787) | —) | |
| Non-current operating lease liabilities | 21,963) | 23,903) | 39,192) | 53,670) | 73,207) | —) | |
| Total debt (including operating lease liability) | 2,252,946) | 1,901,897) | 1,912,230) | 1,334,762) | 935,691) | 830,214) | |
| Stockholders’ equity (deficit) | (962,679) | (687,990) | (801,947) | (110,942) | 331,082) | 289,767) | |
| Total capital (including operating lease liability) | 1,290,267) | 1,213,907) | 1,110,283) | 1,223,820) | 1,266,773) | 1,119,981) | |
| Solvency Ratio | |||||||
| Debt to capital (including operating lease liability)1 | 1.75 | 1.57 | 1.72 | 1.09 | 0.74 | 0.74 | |
| Benchmarks | |||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
| Accenture PLC | 0.13 | 0.11 | 0.13 | 0.15 | 0.17 | 0.00 | |
| Adobe Inc. | 0.30 | 0.20 | 0.25 | 0.24 | 0.26 | 0.28 | |
| Cadence Design Systems Inc. | 0.36 | 0.19 | 0.25 | 0.15 | 0.17 | — | |
| CrowdStrike Holdings Inc. | 0.26 | 0.35 | 0.43 | 0.47 | 0.00 | — | |
| International Business Machines Corp. | 0.68 | 0.73 | 0.71 | 0.74 | 0.76 | — | |
| Intuit Inc. | 0.26 | 0.28 | 0.31 | 0.20 | 0.42 | 0.10 | |
| Microsoft Corp. | 0.27 | 0.28 | 0.32 | 0.37 | 0.41 | 0.46 | |
| Oracle Corp. | 0.92 | 0.99 | 1.08 | 0.94 | 0.86 | — | |
| Palantir Technologies Inc. | 0.05 | 0.06 | 0.09 | 0.10 | 0.23 | — | |
| Palo Alto Networks Inc. | 0.21 | 0.57 | 0.95 | 0.85 | 0.76 | 0.47 | |
| Salesforce Inc. | 0.19 | 0.20 | 0.20 | 0.13 | 0.16 | — | |
| ServiceNow Inc. | 0.19 | 0.23 | 0.31 | 0.37 | 0.43 | — | |
| Synopsys Inc. | 0.07 | 0.10 | 0.11 | 0.11 | 0.12 | 0.03 | |
| Workday Inc. | 0.29 | 0.37 | 0.32 | 0.41 | 0.39 | — | |
| Debt to Capital (including Operating Lease Liability), Sector | |||||||
| Software & Services | 0.39 | 0.42 | 0.45 | 0.48 | 0.51 | — | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||||
| Information Technology | 0.40 | 0.42 | 0.44 | 0.48 | 0.51 | — | |
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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 2,252,946 ÷ 1,290,267 = 1.75
2 Click competitor name to see calculations.
- Total Debt (including operating lease liability)
- The total debt has shown a consistent upward trend over the analyzed periods. Starting from approximately 830 million US dollars in 2019, there was a steady increase each year, reaching over 2.25 billion US dollars by 2024. The most pronounced growth occurred between 2021 and 2022, where debt increased by nearly 580 million US dollars. Although the increase slowed somewhat between 2022 and 2023, debt rose again substantially in 2024.
- Total Capital (including operating lease liability)
- Total capital displayed a less uniform pattern. From 2019 to 2020, capital rose modestly from about 1.12 billion to 1.27 billion US dollars. However, a decline was observed in 2021 and 2022, dropping to roughly 1.11 billion US dollars in 2022. Subsequently, total capital recovered in 2023 and 2024, reaching around 1.29 billion US dollars. Overall, the total capital fluctuated but ended slightly higher than the starting point.
- Debt to Capital Ratio (including operating lease liability)
- This ratio reflects the relationship between total debt and total capital. It remained stable at 0.74 in both 2019 and 2020, indicating that debt constituted about three-quarters of the capital. In 2021, the ratio increased sharply to 1.09, signifying that debt began to exceed total capital. This upward momentum continued, with the ratio peaking at 1.72 in 2022. Although it slightly declined to 1.57 in 2023, the ratio rose again to 1.75 in 2024. This pattern suggests a rising leverage position, with debt far surpassing capital, potentially indicating increased financial risk over time.
- Summary
- Overall, the data indicates a significant increase in leveraged financing over the period. Total debt has more than doubled, while total capital has experienced fluctuations with a modest net increase. The debt to capital ratio exceeding 1.0 from 2021 onwards highlights a transition to a capital structure where debt dominates. Such a structure may imply higher financial risk and potential challenges related to debt servicing. Monitoring this trend is recommended to assess sustainability and impact on financial flexibility.
Debt to Assets
Fair Isaac Corp., debt to assets 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 finance lease liabilities | 3,144) | —) | —) | —) | 2,186) | 1,935) | |
| Current maturities on debt | 15,000) | 50,000) | 30,000) | 250,000) | 95,000) | 218,000) | |
| Long-term debt, excluding current maturities | 2,194,021) | 1,811,658) | 1,823,669) | 1,009,018) | 739,435) | 606,790) | |
| Non-current finance lease liabilities | 7,263) | —) | —) | —) | 3,076) | 3,489) | |
| Total debt | 2,219,428) | 1,861,658) | 1,853,669) | 1,259,018) | 839,697) | 830,214) | |
| Total assets | 1,717,884) | 1,575,281) | 1,442,034) | 1,567,776) | 1,606,240) | 1,433,448) | |
| Solvency Ratio | |||||||
| Debt to assets1 | 1.29 | 1.18 | 1.29 | 0.80 | 0.52 | 0.58 | |
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Accenture PLC | 0.02 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Adobe Inc. | 0.19 | 0.12 | 0.15 | 0.15 | 0.17 | 0.20 | |
| Cadence Design Systems Inc. | 0.28 | 0.11 | 0.15 | 0.08 | 0.09 | — | |
| CrowdStrike Holdings Inc. | 0.11 | 0.15 | 0.20 | 0.27 | 0.00 | — | |
| International Business Machines Corp. | 0.40 | 0.42 | 0.40 | 0.39 | 0.39 | — | |
| Intuit Inc. | 0.19 | 0.22 | 0.25 | 0.13 | 0.31 | 0.07 | |
| Microsoft Corp. | 0.15 | 0.16 | 0.18 | 0.21 | 0.24 | 0.27 | |
| Oracle Corp. | 0.62 | 0.67 | 0.69 | 0.64 | 0.62 | — | |
| Palantir Technologies Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.07 | — | |
| Palo Alto Networks Inc. | 0.05 | 0.14 | 0.30 | 0.31 | 0.34 | 0.22 | |
| Salesforce Inc. | 0.10 | 0.12 | 0.12 | 0.04 | 0.06 | — | |
| ServiceNow Inc. | 0.07 | 0.09 | 0.11 | 0.15 | 0.19 | — | |
| Synopsys Inc. | 0.00 | 0.00 | 0.00 | 0.01 | 0.02 | 0.02 | |
| Workday Inc. | 0.18 | 0.22 | 0.18 | 0.21 | 0.19 | — | |
| Debt to Assets, Sector | |||||||
| Software & Services | 0.23 | 0.25 | 0.26 | 0.28 | 0.30 | — | |
| Debt to Assets, Industry | |||||||
| Information Technology | 0.25 | 0.26 | 0.26 | 0.29 | 0.31 | — | |
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
Debt to assets = Total debt ÷ Total assets
= 2,219,428 ÷ 1,717,884 = 1.29
2 Click competitor name to see calculations.
- Total Debt
- The total debt has shown a consistent upward trend over the six-year period. Starting at $830,214 thousand in 2019, it increased moderately in 2020 to $839,697 thousand. However, from 2021 onwards, there is a significant rise, peaking sharply at $2,219,428 thousand in 2024. This reflects a substantial increase in the company's leverage through additional borrowing or other debt instruments.
- Total Assets
- Total assets have experienced fluctuations during the period. The assets increased from $1,433,448 thousand in 2019 to a peak of $1,606,240 thousand in 2020 before declining in 2021 and 2022 to $1,567,776 thousand and $1,442,034 thousand, respectively. A recovery trend is observed in 2023 and 2024, reaching $1,715,884 thousand. Overall, the asset base shows some volatility but demonstrates a moderate increase over the full period.
- Debt to Assets Ratio
- The debt to assets ratio presents a noteworthy pattern. Initially, it decreased from 0.58 in 2019 to 0.52 in 2020, suggesting improved asset coverage or relatively lower debt. From 2021, the ratio steeply increased, peaking at 1.29 in 2022, indicating that total debt surpassed total assets, a situation potentially concerning for financial stability. The ratio slightly improved in 2023 to 1.18 but returned to 1.29 in 2024, maintaining a level above 1.0. This persistent high leverage implies increasing financial risk and may require attention regarding debt management and capital structure.
Debt to Assets (including Operating Lease Liability)
Fair Isaac Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current finance lease liabilities | 3,144) | —) | —) | —) | 2,186) | 1,935) | |
| Current maturities on debt | 15,000) | 50,000) | 30,000) | 250,000) | 95,000) | 218,000) | |
| Long-term debt, excluding current maturities | 2,194,021) | 1,811,658) | 1,823,669) | 1,009,018) | 739,435) | 606,790) | |
| Non-current finance lease liabilities | 7,263) | —) | —) | —) | 3,076) | 3,489) | |
| Total debt | 2,219,428) | 1,861,658) | 1,853,669) | 1,259,018) | 839,697) | 830,214) | |
| Current operating lease liabilities (included in Other accrued liabilities) | 11,555) | 16,336) | 19,369) | 22,074) | 22,787) | —) | |
| Non-current operating lease liabilities | 21,963) | 23,903) | 39,192) | 53,670) | 73,207) | —) | |
| Total debt (including operating lease liability) | 2,252,946) | 1,901,897) | 1,912,230) | 1,334,762) | 935,691) | 830,214) | |
| Total assets | 1,717,884) | 1,575,281) | 1,442,034) | 1,567,776) | 1,606,240) | 1,433,448) | |
| Solvency Ratio | |||||||
| Debt to assets (including operating lease liability)1 | 1.31 | 1.21 | 1.33 | 0.85 | 0.58 | 0.58 | |
| Benchmarks | |||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
| Accenture PLC | 0.07 | 0.06 | 0.07 | 0.08 | 0.09 | 0.00 | |
| Adobe Inc. | 0.20 | 0.14 | 0.17 | 0.17 | 0.19 | 0.20 | |
| Cadence Design Systems Inc. | 0.29 | 0.14 | 0.18 | 0.11 | 0.13 | — | |
| CrowdStrike Holdings Inc. | 0.12 | 0.16 | 0.21 | 0.29 | 0.00 | — | |
| International Business Machines Corp. | 0.43 | 0.44 | 0.42 | 0.42 | 0.43 | — | |
| Intuit Inc. | 0.20 | 0.24 | 0.27 | 0.16 | 0.33 | 0.07 | |
| Microsoft Corp. | 0.19 | 0.19 | 0.21 | 0.25 | 0.27 | 0.30 | |
| Oracle Corp. | 0.67 | 0.71 | 0.73 | 0.66 | 0.64 | — | |
| Palantir Technologies Inc. | 0.04 | 0.05 | 0.07 | 0.08 | 0.17 | — | |
| Palo Alto Networks Inc. | 0.07 | 0.16 | 0.33 | 0.35 | 0.38 | 0.22 | |
| Salesforce Inc. | 0.14 | 0.15 | 0.15 | 0.10 | 0.11 | — | |
| ServiceNow Inc. | 0.11 | 0.13 | 0.17 | 0.21 | 0.24 | — | |
| Synopsys Inc. | 0.05 | 0.07 | 0.07 | 0.08 | 0.08 | 0.02 | |
| Workday Inc. | 0.20 | 0.24 | 0.20 | 0.26 | 0.23 | — | |
| Debt to Assets (including Operating Lease Liability), Sector | |||||||
| Software & Services | 0.27 | 0.29 | 0.30 | 0.32 | 0.34 | — | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||||
| Information Technology | 0.27 | 0.28 | 0.29 | 0.31 | 0.33 | — | |
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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 2,252,946 ÷ 1,717,884 = 1.31
2 Click competitor name to see calculations.
- Total Debt (including operating lease liability)
- The total debt has shown a consistent upward trend over the analyzed periods. Starting at 830,214 thousand US dollars in September 2019, the debt increased to 2,252,946 thousand US dollars by September 2024. Notably, the most significant increases occurred between 2020 and 2022, with a sharp rise from 935,691 to 1,912,230 thousand US dollars, followed by continued growth through 2023 and 2024.
- Total Assets
- Total assets demonstrate a more variable pattern compared to debt. The assets increased from 1,433,448 thousand US dollars in 2019 to 1,606,240 thousand US dollars in 2020, but then slightly decreased to 1,567,776 in 2021 and further declined to 1,442,034 in 2022. After 2022, assets recovered and showed growth, reaching 1,717,884 thousand US dollars in 2024. Overall, the asset base experienced fluctuations but ended higher than the initial period.
- Debt to Assets Ratio (including operating lease liability)
- The debt to assets ratio remained stable at 0.58 in 2019 and 2020, indicating balanced leverage. However, the ratio then surged considerably to 0.85 in 2021 and peaked at 1.33 in 2022, reflecting a period where liabilities exceeded total assets by a substantial margin. Following this peak, the ratio decreased slightly to 1.21 in 2023 but rose again to 1.31 in 2024. This pattern indicates expanding leverage with debt consistently surpassing asset levels in recent years, suggesting rising financial risk.
Financial Leverage
Fair Isaac Corp., financial leverage 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) | |||||||
| Total assets | 1,717,884) | 1,575,281) | 1,442,034) | 1,567,776) | 1,606,240) | 1,433,448) | |
| Stockholders’ equity (deficit) | (962,679) | (687,990) | (801,947) | (110,942) | 331,082) | 289,767) | |
| Solvency Ratio | |||||||
| Financial leverage1 | — | — | — | — | 4.85 | 4.95 | |
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Accenture PLC | 1.98 | 1.99 | 2.14 | 2.21 | 2.18 | 2.07 | |
| Adobe Inc. | 2.14 | 1.80 | 1.93 | 1.84 | 1.83 | 1.97 | |
| Cadence Design Systems Inc. | 1.92 | 1.67 | 1.87 | 1.60 | 1.58 | — | |
| CrowdStrike Holdings Inc. | 2.88 | 3.43 | 3.53 | 3.14 | 1.89 | — | |
| International Business Machines Corp. | 5.02 | 6.00 | 5.80 | 6.98 | 7.57 | — | |
| Intuit Inc. | 1.74 | 1.61 | 1.69 | 1.57 | 2.14 | 1.68 | |
| Microsoft Corp. | 1.91 | 2.00 | 2.19 | 2.35 | 2.55 | 2.80 | |
| Oracle Corp. | 16.20 | 125.24 | — | 25.03 | 9.56 | — | |
| Palantir Technologies Inc. | 1.27 | 1.30 | 1.35 | 1.42 | 1.77 | — | |
| Palo Alto Networks Inc. | 3.87 | 8.29 | 58.35 | 16.14 | 8.23 | 4.16 | |
| Salesforce Inc. | 1.67 | 1.69 | 1.64 | 1.60 | 1.63 | — | |
| ServiceNow Inc. | 2.12 | 2.28 | 2.64 | 2.92 | 3.07 | — | |
| Synopsys Inc. | 1.45 | 1.68 | 1.71 | 1.65 | 1.64 | 1.57 | |
| Workday Inc. | 2.04 | 2.41 | 2.31 | 2.66 | 2.74 | — | |
| Financial Leverage, Sector | |||||||
| Software & Services | 2.36 | 2.55 | 2.73 | 2.96 | 3.14 | — | |
| Financial Leverage, Industry | |||||||
| Information Technology | 2.46 | 2.56 | 2.69 | 2.90 | 3.12 | — | |
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
Financial leverage = Total assets ÷ Stockholders’ equity (deficit)
= 1,717,884 ÷ -962,679 = —
2 Click competitor name to see calculations.
The data reveals several important trends over the periods analyzed. Total assets experienced fluctuations but displayed an overall upward trend from 1,433,448 thousand US dollars in 2019 to 1,717,884 thousand US dollars in 2024, indicating growth in the asset base. Notably, the total assets peaked in 2020 before a decline in the subsequent two years, followed by recovery in the last two periods.
In contrast, stockholders' equity shows a marked decline and volatility during the same timeframe. Initially positive at 289,767 thousand US dollars in 2019 and rising to 331,082 thousand US dollars in 2020, equity turned negative in 2021 with a significant deficit and continued to deteriorate further through 2024. This trend suggests increasing liabilities or losses that have eroded shareholder value, resulting in a negative equity position starting in 2021 and worsening in subsequent years.
The financial leverage ratio, reported only for 2019 and 2020, remains relatively stable, slightly decreasing from 4.95 to 4.85. However, the absence of data beyond 2020 limits the ability to draw conclusions about leveraging trends in the later periods. Given the negative equity values from 2021 onwards, it can be inferred that leverage may have increased or the company faced financial distress, but firm conclusions cannot be made without the complete data.
- Total Assets
- Increased overall by approximately 20% from 2019 to 2024, showing growth despite some interim fluctuations.
- Stockholders’ Equity
- Shifted from positive to significant negative territory starting in 2021, indicating deteriorating net financial position and possible increased liabilities.
- Financial Leverage
- Reported values show a stable ratio around 4.9 in early years, but lack of data after 2020 prevents trend analysis. The negative equity suggests possible increased financial risk.
Overall, the financial metrics indicate asset growth alongside a worsening equity position, which raises concerns about the company's capital structure and solvency from 2021 onwards. Further analysis would be required with complete leverage data and additional financial indicators to assess financial stability comprehensively.
Interest Coverage
Fair Isaac Corp., interest coverage 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) | |||||||
| Net income | 512,811) | 429,375) | 373,541) | 392,084) | 236,411) | 192,124) | |
| Add: Income tax expense | 129,214) | 124,249) | 97,768) | 81,058) | 20,589) | 23,948) | |
| Add: Interest expense, net | 105,638) | 95,546) | 68,967) | 40,092) | 42,177) | 39,752) | |
| Earnings before interest and tax (EBIT) | 747,663) | 649,170) | 540,276) | 513,234) | 299,177) | 255,824) | |
| Solvency Ratio | |||||||
| Interest coverage1 | 7.08 | 6.79 | 7.83 | 12.80 | 7.09 | 6.44 | |
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Accenture PLC | 165.48 | 193.31 | 195.34 | 131.46 | 205.84 | 273.26 | |
| Adobe Inc. | 42.01 | 61.17 | 54.64 | 51.49 | 37.00 | 21.38 | |
| Cadence Design Systems Inc. | 19.37 | 36.43 | 46.58 | 46.26 | 31.50 | — | |
| CrowdStrike Holdings Inc. | 5.77 | -5.31 | -5.34 | -55.36 | -315.25 | — | |
| International Business Machines Corp. | 4.40 | 6.42 | 1.97 | 5.20 | 4.62 | — | |
| Intuit Inc. | 15.67 | 13.05 | 32.38 | 89.14 | 158.00 | 126.40 | |
| Microsoft Corp. | 37.72 | 46.38 | 41.58 | 31.31 | 21.47 | 17.27 | |
| Oracle Corp. | 4.39 | 3.65 | 3.84 | 6.28 | 7.13 | — | |
| Palantir Technologies Inc. | — | 69.33 | -87.97 | -133.20 | -82.39 | — | |
| Palo Alto Networks Inc. | 120.07 | 21.82 | -6.56 | -1.85 | -1.61 | 0.11 | |
| Salesforce Inc. | 18.49 | 3.20 | 7.93 | 21.49 | 6.43 | — | |
| ServiceNow Inc. | 76.57 | 43.00 | 15.78 | 9.89 | 5.56 | — | |
| Synopsys Inc. | 44.06 | 1,106.08 | 657.96 | 240.38 | 125.16 | 47.79 | |
| Workday Inc. | 4.12 | -1.54 | 1.97 | -3.00 | -7.22 | — | |
| Interest Coverage, Sector | |||||||
| Software & Services | 17.98 | 17.22 | 18.09 | 17.35 | 13.97 | — | |
| Interest Coverage, Industry | |||||||
| Information Technology | 19.55 | 17.69 | 22.65 | 19.92 | 14.14 | — | |
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
Interest coverage = EBIT ÷ Interest expense
= 747,663 ÷ 105,638 = 7.08
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
- The EBIT exhibits a consistent upward trend over the six-year period. Starting at 255,824 thousand US dollars in 2019, it increased each year, reaching 747,663 thousand US dollars by 2024. The most significant growth occurred between 2020 and 2021, where EBIT nearly doubled, indicating substantial operational improvement. This positive trajectory suggests an increasing ability to generate earnings from core business activities before accounting for interest and taxes.
- Interest expense, net
- The net interest expense shows some fluctuations, beginning at 39,752 thousand US dollars in 2019 and rising to 105,638 thousand US dollars by 2024. Notably, interest expense declined slightly from 42,177 thousand in 2020 to 40,092 thousand in 2021 but then sharply increased in 2022 and continued rising through 2024. This increasing interest cost may indicate higher debt levels or increased borrowing costs during the later years.
- Interest coverage ratio
- The interest coverage ratio reflects the company's ability to meet interest obligations from operating earnings. Starting at 6.44 in 2019, it increased to a peak of 12.8 in 2021, signaling a strong buffer between EBIT and interest expense that year. However, after 2021, the ratio declines to 7.08 by 2024, despite EBIT growth, due to the proportionally higher increase in interest expense. This decrease points to a relative weakening in the margin of safety for covering interest payments, although the ratio remains above 6, indicating continued adequate coverage.
- Overall analysis
- The company's operational profitability consistently improves, as shown by the steady rise in EBIT. However, increasing interest expenses from 2022 onwards have moderated the improvement in interest coverage. While EBIT growth helps maintain a comfortable interest coverage ratio, the rising interest expenses warrant monitoring for potential impacts on financial stability if the trend continues.
Fixed Charge Coverage
Fair Isaac Corp., fixed charge coverage 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) | |||||||
| Net income | 512,811) | 429,375) | 373,541) | 392,084) | 236,411) | 192,124) | |
| Add: Income tax expense | 129,214) | 124,249) | 97,768) | 81,058) | 20,589) | 23,948) | |
| Add: Interest expense, net | 105,638) | 95,546) | 68,967) | 40,092) | 42,177) | 39,752) | |
| Earnings before interest and tax (EBIT) | 747,663) | 649,170) | 540,276) | 513,234) | 299,177) | 255,824) | |
| Add: Operating lease cost | 14,421) | 16,594) | 18,426) | 19,551) | 23,624) | 21,600) | |
| Earnings before fixed charges and tax | 762,084) | 665,764) | 558,702) | 532,785) | 322,801) | 277,424) | |
| Interest expense, net | 105,638) | 95,546) | 68,967) | 40,092) | 42,177) | 39,752) | |
| Operating lease cost | 14,421) | 16,594) | 18,426) | 19,551) | 23,624) | 21,600) | |
| Fixed charges | 120,059) | 112,140) | 87,393) | 59,643) | 65,801) | 61,352) | |
| Solvency Ratio | |||||||
| Fixed charge coverage1 | 6.35 | 5.94 | 6.39 | 8.93 | 4.91 | 4.52 | |
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| Accenture PLC | 13.46 | 10.98 | 12.25 | 10.41 | 9.66 | 10.07 | |
| Adobe Inc. | 26.20 | 30.56 | 26.79 | 25.59 | 18.77 | 10.78 | |
| Cadence Design Systems Inc. | 11.13 | 14.79 | 15.50 | 13.77 | 11.46 | — | |
| CrowdStrike Holdings Inc. | 3.98 | -3.39 | -3.39 | -6.40 | -12.01 | — | |
| International Business Machines Corp. | 3.13 | 4.32 | 1.52 | 3.13 | 2.62 | — | |
| Intuit Inc. | 11.14 | 9.03 | 14.67 | 25.58 | 27.48 | 34.00 | |
| Microsoft Corp. | 17.61 | 19.44 | 19.50 | 16.90 | 12.44 | 10.94 | |
| Oracle Corp. | 3.55 | 3.12 | 3.22 | 5.17 | 5.68 | — | |
| Palantir Technologies Inc. | 9.48 | 4.62 | -5.06 | -7.89 | -16.41 | — | |
| Palo Alto Networks Inc. | 12.78 | 7.20 | -1.18 | -1.09 | -0.52 | 0.41 | |
| Salesforce Inc. | 4.74 | 1.51 | 2.18 | 2.92 | 1.68 | — | |
| ServiceNow Inc. | 12.36 | 7.59 | 3.87 | 2.95 | 2.29 | — | |
| Synopsys Inc. | 12.88 | 14.38 | 12.91 | 9.29 | 7.46 | 6.30 | |
| Workday Inc. | 2.60 | -0.29 | 1.15 | -0.69 | -2.35 | — | |
| Fixed Charge Coverage, Sector | |||||||
| Software & Services | 9.99 | 9.48 | 9.44 | 9.23 | 7.43 | — | |
| Fixed Charge Coverage, Industry | |||||||
| Information Technology | 12.44 | 11.34 | 13.44 | 12.21 | 9.04 | — | |
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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 762,084 ÷ 120,059 = 6.35
2 Click competitor name to see calculations.
- Earnings before fixed charges and tax
- The earnings before fixed charges and tax demonstrate a consistent upward trend from 2019 to 2024. The value increased steadily from 277,424 thousand US dollars in 2019 to 762,084 thousand US dollars in 2024. Notably, there was a significant jump between 2020 and 2021, where earnings rose from 322,801 to 532,785 thousand US dollars. The growth, although somewhat more moderate after 2021, continued each year through 2024.
- Fixed charges
- Fixed charges exhibit more variability over the same period. Starting at 61,352 thousand US dollars in 2019, fixed charges showed an overall increasing pattern but with fluctuations. After a moderate increase in 2020 to 65,801 thousand US dollars, fixed charges declined slightly to 59,643 thousand US dollars in 2021, before rising sharply in 2022 to 87,393 thousand US dollars. Thereafter, fixed charges continued to increase, reaching 120,059 thousand US dollars by 2024.
- Fixed charge coverage ratio
- The fixed charge coverage ratio, which measures the ability to cover fixed charges from earnings before fixed charges and tax, fluctuated over the period. It improved from 4.52 in 2019 to a peak of 8.93 in 2021, reflecting strong relative earnings growth. However, it declined to 6.39 in 2022 and further to 5.94 in 2023, likely impacted by the rise in fixed charges. The ratio showed some recovery to 6.35 by 2024. Despite this decline after 2021, the ratio remains above the initial 2019 level, indicating sustained coverage capacity.