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)
Debt Ratios
Coverage Ratios
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).
The solvency profile exhibits a marked increase in leverage over the analyzed period, particularly from 2021 onward, while maintaining a consistent capacity to meet interest and fixed obligations.
- Leverage and Capital Structure
- A significant upward trend is observed in both debt to capital and debt to assets ratios. The debt to capital ratio increased from 0.72 in 2020 to 1.77 by September 30, 2024. Concurrently, the debt to assets ratio rose from 0.52 in 2020 to 1.29 in 2024. Ratios exceeding 1.0 in the debt to assets category indicate a capital structure where total liabilities exceed total assets, which typically suggests negative shareholder equity.
- Debt Servicing Capacity
- Despite the increase in leverage, the ability to service debt remains stable. Interest coverage peaked at 12.80 in 2021 before adjusting to 7.08 in 2024. Fixed charge coverage followed a comparable trajectory, peaking at 8.93 in 2021 and concluding the period at 6.35. These figures indicate that operational earnings continue to provide a sufficient cushion to cover interest and fixed charges.
- Early Period Indicators
- Between 2019 and 2020, a slight reduction in risk was noted, with the debt to equity ratio decreasing from 2.87 to 2.54 and financial leverage declining from 4.95 to 4.85. However, these metrics are not available for the latter half of the analyzed period.
- Lease Liability Impact
- The inclusion of operating lease liabilities results in a marginal increase across all leverage ratios. For instance, the debt to assets ratio including operating leases reached 1.31 in 2024, compared to 1.29 excluding leases, indicating that lease obligations represent a small portion of the total liability structure.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
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 | — | — | |
| Adobe Inc. | 0.40 | 0.22 | 0.29 | 0.28 | 0.31 | — | |
| AppLovin Corp. | 3.36 | 2.61 | 1.72 | 1.53 | — | — | |
| Cadence Design Systems Inc. | 0.53 | 0.19 | 0.27 | 0.13 | — | — | |
| Datadog Inc. | 0.59 | 0.37 | 0.52 | 0.71 | — | — | |
| International Business Machines Corp. | 2.01 | 2.51 | 2.32 | 2.74 | — | — | |
| Intuit Inc. | 0.33 | 0.35 | 0.42 | 0.21 | — | — | |
| Microsoft Corp. | 0.29 | 0.31 | 0.39 | 0.50 | — | — | |
| Oracle Corp. | 9.98 | 84.33 | — | 16.08 | — | — | |
| Palantir Technologies Inc. | 0.00 | 0.00 | 0.00 | 0.00 | — | — | |
| Palo Alto Networks Inc. | 0.19 | 1.14 | 17.51 | 5.08 | — | — | |
| Salesforce Inc. | 0.17 | 0.20 | 0.19 | 0.07 | — | — | |
| ServiceNow Inc. | 0.15 | 0.20 | 0.30 | 0.43 | — | — | |
| Synopsys Inc. | 0.00 | 0.00 | 0.00 | 0.02 | 0.03 | — | |
| Workday Inc. | 0.37 | 0.53 | 0.41 | 0.55 | — | — | |
| Debt to Equity, Sector | |||||||
| Software & Services | 0.55 | 0.64 | 0.71 | 0.83 | — | — | |
| Debt to Equity, Industry | |||||||
| Information Technology | 0.61 | 0.66 | 0.70 | 0.83 | — | — | |
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 solvency profile exhibits a strategic shift in capital structure between 2019 and 2024, marked by a substantial increase in borrowed capital and a transition to a negative net worth position.
- Total Debt Progression
- A consistent upward trajectory in total debt is evident. Debt levels increased from 830,214 thousand US dollars in 2019 to 2,219,428 thousand US dollars by September 30, 2024. The most pronounced acceleration occurred between 2020 and 2022, during which debt expanded from 839,697 thousand to 1,853,669 thousand US dollars.
- Stockholders' Equity Dynamics
- The equity position transitioned from a positive balance to a significant deficit. After maintaining positive equity through 2020, a deficit was recorded in 2021. Despite a moderate reduction in the deficit during 2023, the negative position deepened to 962,679 thousand US dollars by 2024.
- Solvency and Leverage Implications
- The debt-to-equity ratio declined slightly from 2.87 in 2019 to 2.54 in 2020. Following 2020, the ratio becomes mathematically inapplicable due to the emergence of negative stockholders' equity. The combination of escalating total debt and a widening equity deficit indicates a highly leveraged financial state where total liabilities exceed total assets.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
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 | — | — | |
| Adobe Inc. | 0.43 | 0.25 | 0.33 | 0.32 | 0.35 | — | |
| AppLovin Corp. | 3.41 | 2.66 | 1.76 | 1.57 | — | — | |
| Cadence Design Systems Inc. | 0.56 | 0.24 | 0.34 | 0.18 | — | — | |
| Datadog Inc. | 0.68 | 0.45 | 0.59 | 0.78 | — | — | |
| International Business Machines Corp. | 2.14 | 2.66 | 2.46 | 2.92 | — | — | |
| Intuit Inc. | 0.36 | 0.39 | 0.46 | 0.25 | — | — | |
| Microsoft Corp. | 0.36 | 0.39 | 0.47 | 0.58 | — | — | |
| Oracle Corp. | 10.85 | 88.84 | — | 16.61 | — | — | |
| Palantir Technologies Inc. | 0.05 | 0.07 | 0.10 | 0.11 | — | — | |
| Palo Alto Networks Inc. | 0.27 | 1.33 | 19.12 | 5.68 | — | — | |
| Salesforce Inc. | 0.23 | 0.25 | 0.25 | 0.15 | — | — | |
| ServiceNow Inc. | 0.24 | 0.30 | 0.44 | 0.60 | — | — | |
| Synopsys Inc. | 0.08 | 0.11 | 0.12 | 0.13 | 0.14 | — | |
| Workday Inc. | 0.41 | 0.58 | 0.46 | 0.68 | — | — | |
| Debt to Equity (including Operating Lease Liability), Sector | |||||||
| Software & Services | 0.63 | 0.73 | 0.81 | 0.93 | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||||
| Information Technology | 0.67 | 0.72 | 0.76 | 0.90 | — | — | |
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.
A significant deterioration in the company's solvency profile is evident over the six-year period analyzed. The capital structure has shifted from a positive equity position to a substantial deficit, occurring simultaneously with a steady increase in total debt obligations.
- Total Debt Trends
- Total debt, including operating lease liabilities, exhibits a consistent upward trajectory, rising from 830.2 million US dollars in 2019 to 2.25 billion US dollars by September 30, 2024. The most significant acceleration in borrowing occurred between 2021 and 2022, when total debt increased by approximately 43% within a single fiscal year.
- Stockholders' Equity Evolution
- A critical structural change occurred between 2020 and 2021, as stockholders' equity transitioned from a positive balance of 331.1 million US dollars to a deficit of 110.9 million US dollars. This negative equity position expanded further over the subsequent years, reaching a deficit of 962.7 million US dollars by 2024, indicating that total liabilities exceed total assets.
- Debt to Equity Ratio Analysis
- The debt to equity ratio remained relatively stable during the initial two years, recorded at 2.87 in 2019 and 2.83 in 2020. Following the transition to a negative equity balance in 2021, the ratio becomes mathematically unconventional and ceases to provide a standard measure of solvency, reflecting a state of negative net worth.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
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 | — | — | |
| Adobe Inc. | 0.29 | 0.18 | 0.23 | 0.22 | 0.24 | — | |
| AppLovin Corp. | 0.77 | 0.72 | 0.63 | 0.60 | — | — | |
| Cadence Design Systems Inc. | 0.35 | 0.16 | 0.21 | 0.11 | — | — | |
| Datadog Inc. | 0.37 | 0.27 | 0.34 | 0.41 | — | — | |
| International Business Machines Corp. | 0.67 | 0.72 | 0.70 | 0.73 | — | — | |
| Intuit Inc. | 0.25 | 0.26 | 0.30 | 0.17 | — | — | |
| Microsoft Corp. | 0.23 | 0.24 | 0.28 | 0.33 | — | — | |
| Oracle Corp. | 0.91 | 0.99 | 1.09 | 0.94 | — | — | |
| Palantir Technologies Inc. | 0.00 | 0.00 | 0.00 | 0.00 | — | — | |
| Palo Alto Networks Inc. | 0.16 | 0.53 | 0.95 | 0.84 | — | — | |
| Salesforce Inc. | 0.15 | 0.16 | 0.16 | 0.06 | — | — | |
| ServiceNow Inc. | 0.13 | 0.16 | 0.23 | 0.30 | — | — | |
| Synopsys Inc. | 0.00 | 0.00 | 0.00 | 0.02 | 0.03 | — | |
| Workday Inc. | 0.27 | 0.35 | 0.29 | 0.35 | — | — | |
| Debt to Capital, Sector | |||||||
| Software & Services | 0.35 | 0.39 | 0.42 | 0.45 | — | — | |
| Debt to Capital, Industry | |||||||
| Information Technology | 0.38 | 0.40 | 0.41 | 0.45 | — | — | |
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.
The financial solvency profile from September 2019 through September 2024 is characterized by a significant escalation in leverage. A consistent upward trajectory in total debt, contrasted with a relatively stagnant capital base, has resulted in a substantial increase in the debt-to-capital ratio over the six-year period.
- Total Debt Trends
- Total debt exhibited aggressive growth, increasing from US$ 830,214 thousand in 2019 to US$ 2,219,428 thousand by 2024. The most pronounced acceleration occurred between September 2020 and September 2022, during which debt rose from approximately US$ 840 million to over US$ 1.85 billion.
- Total Capital Dynamics
- Total capital remained relatively stable with minor fluctuations, starting at US$ 1,119,981 thousand in 2019 and ending at US$ 1,256,749 thousand in 2024. A notable dip was observed in 2022, where capital reached a period low of US$ 1,051,722 thousand, further amplifying the impact of rising debt on solvency metrics.
- Debt to Capital Ratio Analysis
- The debt to capital ratio more than doubled over the analyzed timeframe, rising from 0.74 in 2019 to 1.77 in 2024. A critical inflection point occurred in September 2021, when the ratio surpassed 1.0, indicating that total debt began to exceed total capital. After a brief moderation to 1.59 in 2023, the ratio returned to a peak of 1.77 in 2024, signaling a highly leveraged capital structure.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
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 | — | — | |
| Adobe Inc. | 0.30 | 0.20 | 0.25 | 0.24 | 0.26 | — | |
| AppLovin Corp. | 0.77 | 0.73 | 0.64 | 0.61 | — | — | |
| Cadence Design Systems Inc. | 0.36 | 0.19 | 0.25 | 0.15 | — | — | |
| Datadog Inc. | 0.40 | 0.31 | 0.37 | 0.44 | — | — | |
| International Business Machines Corp. | 0.68 | 0.73 | 0.71 | 0.74 | — | — | |
| Intuit Inc. | 0.26 | 0.28 | 0.31 | 0.20 | — | — | |
| Microsoft Corp. | 0.27 | 0.28 | 0.32 | 0.37 | — | — | |
| Oracle Corp. | 0.92 | 0.99 | 1.08 | 0.94 | — | — | |
| Palantir Technologies Inc. | 0.05 | 0.06 | 0.09 | 0.10 | — | — | |
| Palo Alto Networks Inc. | 0.21 | 0.57 | 0.95 | 0.85 | — | — | |
| Salesforce Inc. | 0.19 | 0.20 | 0.20 | 0.13 | — | — | |
| ServiceNow Inc. | 0.19 | 0.23 | 0.31 | 0.37 | — | — | |
| Synopsys Inc. | 0.07 | 0.10 | 0.11 | 0.11 | 0.12 | — | |
| Workday Inc. | 0.29 | 0.37 | 0.32 | 0.41 | — | — | |
| Debt to Capital (including Operating Lease Liability), Sector | |||||||
| Software & Services | 0.39 | 0.42 | 0.45 | 0.48 | — | — | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||||
| Information Technology | 0.40 | 0.42 | 0.43 | 0.47 | — | — | |
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.
Analysis of the solvency metrics reveals a significant shift in the capital structure over the six-year period ending September 30, 2024. There is a pronounced upward trend in leverage, characterized by a substantial increase in total debt relative to the total capital base.
- Total Debt Expansion
- Total debt, including operating lease liabilities, grew from US$ 830.2 million in 2019 to US$ 2.25 billion in 2024. This represents a total increase of approximately 171%. The most rapid escalation occurred between 2020 and 2022, during which debt increased from US$ 935.7 million to US$ 1.91 billion.
- Total Capital Stagnation
- In contrast to the rise in debt, total capital remained relatively stagnant, fluctuating within a narrow range between US$ 1.11 billion and US$ 1.29 billion. The absence of proportional growth in total capital despite the heavy increase in debt indicates a contraction in the equity portion of the capital structure.
- Debt to Capital Ratio Trajectory
- The debt to capital ratio remained stable at 0.74 through 2020 before experiencing a sharp increase. The ratio surpassed the 1.0 threshold in 2021 (1.09) and rose to 1.72 by 2022. Following a slight decrease to 1.57 in 2023, the ratio reached a peak of 1.75 in 2024. A ratio exceeding 1.0 signifies that total debt exceeds total capital, which is indicative of negative shareholders' equity and an aggressive leverage strategy.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
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 | — | — | |
| Adobe Inc. | 0.19 | 0.12 | 0.15 | 0.15 | 0.17 | — | |
| AppLovin Corp. | 0.62 | 0.61 | 0.56 | 0.53 | — | — | |
| Cadence Design Systems Inc. | 0.28 | 0.11 | 0.15 | 0.08 | — | — | |
| Datadog Inc. | 0.28 | 0.19 | 0.25 | 0.31 | — | — | |
| International Business Machines Corp. | 0.40 | 0.42 | 0.40 | 0.39 | — | — | |
| Intuit Inc. | 0.19 | 0.22 | 0.25 | 0.13 | — | — | |
| Microsoft Corp. | 0.15 | 0.16 | 0.18 | 0.21 | — | — | |
| Oracle Corp. | 0.62 | 0.67 | 0.69 | 0.64 | — | — | |
| Palantir Technologies Inc. | 0.00 | 0.00 | 0.00 | 0.00 | — | — | |
| Palo Alto Networks Inc. | 0.05 | 0.14 | 0.30 | 0.31 | — | — | |
| Salesforce Inc. | 0.10 | 0.12 | 0.12 | 0.04 | — | — | |
| ServiceNow Inc. | 0.07 | 0.09 | 0.11 | 0.15 | — | — | |
| Synopsys Inc. | 0.00 | 0.00 | 0.00 | 0.01 | 0.02 | — | |
| Workday Inc. | 0.18 | 0.22 | 0.18 | 0.21 | — | — | |
| Debt to Assets, Sector | |||||||
| Software & Services | 0.23 | 0.25 | 0.26 | 0.28 | — | — | |
| Debt to Assets, Industry | |||||||
| Information Technology | 0.25 | 0.26 | 0.26 | 0.29 | — | — | |
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.
An analysis of the solvency position between September 30, 2019, and September 30, 2024, reveals a significant escalation in financial leverage. A clear divergence is observed between the aggressive growth of total debt and the relatively stagnant movement of total assets, resulting in a substantial increase in the debt-to-assets ratio over the six-year period.
- Total Debt Trajectory
- Debt levels exhibited a consistent and steep upward trend, increasing from 830.2 million US dollars in 2019 to approximately 2.22 billion US dollars by 2024. The most accelerated growth occurred between 2020 and 2022, where total debt rose from 839.7 million US dollars to 1.85 billion US dollars, representing a more than twofold increase in a two-year window.
- Total Asset Performance
- Total assets demonstrated a lack of linear growth, fluctuating throughout the period. After reaching a local peak of 1.61 billion US dollars in 2020, assets declined to 1.44 billion US dollars by 2022. While a recovery followed, ending at 1.72 billion US dollars in 2024, the asset growth rate failed to keep pace with the expansion of debt obligations.
- Debt to Assets Ratio Analysis
- The debt-to-assets ratio shifted from a conservative 0.58 in 2019 to a highly leveraged 1.29 by 2024. A critical threshold was crossed in 2022 when the ratio first exceeded 1.0, indicating that total debt surpassed total assets. Although a slight reduction to 1.18 was noted in 2023, the ratio returned to 1.29 in 2024, confirming a sustained state of negative equity relative to total debt.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
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 | — | — | |
| Adobe Inc. | 0.20 | 0.14 | 0.17 | 0.17 | 0.19 | — | |
| AppLovin Corp. | 0.63 | 0.62 | 0.57 | 0.54 | — | — | |
| Cadence Design Systems Inc. | 0.29 | 0.14 | 0.18 | 0.11 | — | — | |
| Datadog Inc. | 0.32 | 0.23 | 0.28 | 0.34 | — | — | |
| International Business Machines Corp. | 0.43 | 0.44 | 0.42 | 0.42 | — | — | |
| Intuit Inc. | 0.20 | 0.24 | 0.27 | 0.16 | — | — | |
| Microsoft Corp. | 0.19 | 0.19 | 0.21 | 0.25 | — | — | |
| Oracle Corp. | 0.67 | 0.71 | 0.73 | 0.66 | — | — | |
| Palantir Technologies Inc. | 0.04 | 0.05 | 0.07 | 0.08 | — | — | |
| Palo Alto Networks Inc. | 0.07 | 0.16 | 0.33 | 0.35 | — | — | |
| Salesforce Inc. | 0.14 | 0.15 | 0.15 | 0.10 | — | — | |
| ServiceNow Inc. | 0.11 | 0.13 | 0.17 | 0.21 | — | — | |
| Synopsys Inc. | 0.05 | 0.07 | 0.07 | 0.08 | 0.08 | — | |
| Workday Inc. | 0.20 | 0.24 | 0.20 | 0.26 | — | — | |
| Debt to Assets (including Operating Lease Liability), Sector | |||||||
| Software & Services | 0.27 | 0.29 | 0.30 | 0.32 | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||||
| Information Technology | 0.27 | 0.28 | 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 (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.
The financial trajectory from 2019 to 2024 reflects a substantial increase in leverage relative to the asset base. Total debt, inclusive of operating lease liabilities, grew from $830.2 million in 2019 to $2.25 billion in 2024, representing an increase of approximately 171%. During the same period, total assets demonstrated limited growth and volatility, rising from $1.43 billion in 2019 to $1.72 billion in 2024.
- Debt to Assets Ratio Progression
- A period of stability was observed between 2019 and 2020, with the ratio remaining constant at 0.58. A sharp escalation occurred beginning in 2021, where the ratio climbed to 0.85, and further spiked to 1.33 by September 30, 2022.
- Solvency Implications
- The ratio surpassed the critical threshold of 1.0 in 2022, indicating that total debt and lease liabilities exceeded total assets. While a slight correction to 1.21 occurred in 2023, the ratio rose again to 1.31 by 2024, confirming a persistent state where debt obligations outweigh the total asset value.
- Asset-Debt Divergence
- The divergence between debt accumulation and asset growth is most pronounced between 2021 and 2022, where total debt increased by approximately $577 million while total assets decreased by $135 million, contributing to the rapid deterioration of the solvency position.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Financial Leverage
Fair Isaac Corp., financial leverage calculation, comparison to benchmarks
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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 | — | — | |
| Adobe Inc. | 2.14 | 1.80 | 1.93 | 1.84 | 1.83 | — | |
| AppLovin Corp. | 5.39 | 4.27 | 3.07 | 2.88 | — | — | |
| Cadence Design Systems Inc. | 1.92 | 1.67 | 1.87 | 1.60 | — | — | |
| Datadog Inc. | 2.13 | 1.94 | 2.13 | 2.29 | — | — | |
| International Business Machines Corp. | 5.02 | 6.00 | 5.80 | 6.98 | — | — | |
| Intuit Inc. | 1.74 | 1.61 | 1.69 | 1.57 | — | — | |
| Microsoft Corp. | 1.91 | 2.00 | 2.19 | 2.35 | — | — | |
| Oracle Corp. | 16.20 | 125.24 | — | 25.03 | — | — | |
| Palantir Technologies Inc. | 1.27 | 1.30 | 1.35 | 1.42 | — | — | |
| Palo Alto Networks Inc. | 3.87 | 8.29 | 58.35 | 16.14 | — | — | |
| Salesforce Inc. | 1.67 | 1.69 | 1.64 | 1.60 | — | — | |
| ServiceNow Inc. | 2.12 | 2.28 | 2.64 | 2.92 | — | — | |
| Synopsys Inc. | 1.45 | 1.68 | 1.71 | 1.65 | 1.64 | — | |
| Workday Inc. | 2.04 | 2.41 | 2.31 | 2.66 | — | — | |
| Financial Leverage, Sector | |||||||
| Software & Services | 2.35 | 2.55 | 2.72 | 2.95 | — | — | |
| Financial Leverage, Industry | |||||||
| Information Technology | 2.44 | 2.53 | 2.65 | 2.87 | — | — | |
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.
Analysis of the financial structure reveals a profound shift in the balance sheet composition from 2019 to 2024. The organization has transitioned from a positive equity position to a state of significant stockholders' deficit, despite a general upward trend in total asset accumulation.
- Asset Trends
- Total assets exhibited fluctuations, increasing from US$ 1,433,448 thousand in 2019 to a peak of US$ 1,717,884 thousand by September 30, 2024. This represents a general expansion of the asset base over the six-year period, despite a temporary decline observed between 2020 and 2022.
- Equity Position
- A critical shift occurred in the stockholders' equity, which moved from a positive value of US$ 331,082 thousand in 2020 to a deficit of US$ 110,942 thousand in 2021. This downward trajectory intensified over subsequent years, culminating in a deficit of US$ 962,679 thousand by 2024. This negative equity indicates that total liabilities exceed total assets.
- Financial Leverage Dynamics
- In the initial period of 2019 and 2020, financial leverage remained relatively stable, moving slightly from 4.95 to 4.85. Following the transition to negative equity in 2021, the traditional leverage ratio becomes conceptually distinct as the company operates with a negative net worth. This capital structure suggests an aggressive financial strategy, potentially characterized by significant debt utilization or substantial share repurchases that have surpassed retained earnings.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
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 | — | — | |
| Adobe Inc. | 42.01 | 61.17 | 54.64 | 51.49 | 37.00 | — | |
| AppLovin Corp. | 5.95 | 2.38 | -0.19 | 1.45 | — | — | |
| Cadence Design Systems Inc. | 19.37 | 36.43 | 46.58 | 46.26 | — | — | |
| Datadog Inc. | 29.85 | 10.56 | -1.30 | 0.12 | — | — | |
| International Business Machines Corp. | 4.40 | 6.42 | 1.97 | 5.20 | — | — | |
| Intuit Inc. | 15.67 | 13.05 | 32.38 | 89.14 | — | — | |
| Microsoft Corp. | 37.72 | 46.38 | 41.58 | 31.31 | — | — | |
| Oracle Corp. | 4.39 | 3.65 | 3.84 | 6.28 | — | — | |
| Palantir Technologies Inc. | — | 69.33 | -87.97 | -133.20 | — | — | |
| Palo Alto Networks Inc. | 120.07 | 21.82 | -6.56 | -1.85 | — | — | |
| Salesforce Inc. | 18.49 | 3.20 | 7.93 | 21.49 | — | — | |
| ServiceNow Inc. | 76.57 | 43.00 | 15.78 | 9.89 | — | — | |
| Synopsys Inc. | 44.06 | 1,106.08 | 657.96 | 240.38 | 125.16 | — | |
| Workday Inc. | 4.12 | -1.54 | 1.97 | -3.00 | — | — | |
| Interest Coverage, Sector | |||||||
| Software & Services | 17.74 | 16.91 | 17.77 | 17.09 | — | — | |
| Interest Coverage, Industry | |||||||
| Information Technology | 19.15 | 17.37 | 22.18 | 19.66 | — | — | |
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.
The analysis of solvency ratios indicates a strong capacity to service debt obligations, supported by significant growth in operating profitability despite a rising cost of borrowing. While the interest coverage ratio has experienced volatility, it remains well above critical thresholds, reflecting a stable financial position.
- Earnings Before Interest and Tax (EBIT) Growth
- Operating earnings exhibit a consistent and substantial upward trajectory, increasing from 255,824 thousand dollars in 2019 to 747,663 thousand dollars in 2024. A notable acceleration occurred between 2020 and 2021, where EBIT grew by approximately 71%, establishing a higher baseline for operating income that has continued to expand through 2024.
- Interest Expense Evolution
- Net interest expenses remained relatively stable from 2019 through 2021, fluctuating around the 40,000 thousand dollar mark. However, a significant upward trend is observed starting in 2022, with expenses rising to 68,967 thousand dollars and continuing to climb to 105,638 thousand dollars by 2024. This trend suggests a strategic increase in leverage or the impact of higher prevailing interest rates on existing debt.
- Interest Coverage Ratio Trends
- The interest coverage ratio peaked at 12.80 in 2021, a result of the sharp increase in EBIT occurring while interest expenses remained flat. Subsequently, the ratio contracted to 7.83 in 2022 and 6.79 in 2023, reflecting the period where interest expense growth outpaced EBIT growth. By 2024, the ratio stabilized at 7.08, indicating that the growth in operational earnings is currently offsetting the increased costs of debt servicing.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
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 | — | — | |
| Adobe Inc. | 26.20 | 30.56 | 26.79 | 25.59 | 18.77 | — | |
| AppLovin Corp. | 5.73 | 2.30 | -0.07 | 1.35 | — | — | |
| Cadence Design Systems Inc. | 11.13 | 14.79 | 15.50 | 13.77 | — | — | |
| Datadog Inc. | 5.09 | 2.47 | 0.09 | 0.55 | — | — | |
| International Business Machines Corp. | 3.13 | 4.32 | 1.52 | 3.13 | — | — | |
| Intuit Inc. | 11.14 | 9.03 | 14.67 | 25.58 | — | — | |
| Microsoft Corp. | 17.61 | 19.44 | 19.50 | 16.90 | — | — | |
| Oracle Corp. | 3.55 | 3.12 | 3.22 | 5.17 | — | — | |
| Palantir Technologies Inc. | 9.48 | 4.62 | -5.06 | -7.89 | — | — | |
| Palo Alto Networks Inc. | 12.78 | 7.20 | -1.18 | -1.09 | — | — | |
| Salesforce Inc. | 4.74 | 1.51 | 2.18 | 2.92 | — | — | |
| ServiceNow Inc. | 12.36 | 7.59 | 3.87 | 2.95 | — | — | |
| Synopsys Inc. | 12.88 | 14.38 | 12.91 | 9.29 | 7.46 | — | |
| Workday Inc. | 2.60 | -0.29 | 1.15 | -0.69 | — | — | |
| Fixed Charge Coverage, Sector | |||||||
| Software & Services | 9.93 | 9.38 | 9.33 | 9.14 | — | — | |
| Fixed Charge Coverage, Industry | |||||||
| Information Technology | 12.29 | 11.23 | 13.28 | 12.13 | — | — | |
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.
The analysis of solvency metrics from September 30, 2019, to September 30, 2024, reveals a consistent expansion in the capacity to service fixed obligations, driven primarily by substantial growth in operating earnings. While fixed charges have increased over the observed period, the growth in earnings has generally outpaced the rise in obligations, maintaining a healthy solvency profile.
- Earnings Before Fixed Charges and Tax
- A strong and continuous upward trend is observed in earnings before fixed charges and tax, which rose from 277,424 thousand USD in 2019 to 762,084 thousand USD in 2024. The most significant acceleration occurred between 2020 and 2021, where earnings increased by approximately 65%, providing a substantial cushion for fixed cost obligations.
- Fixed Charges
- Fixed charges exhibited a general increase over the six-year period, growing from 61,352 thousand USD in 2019 to 120,059 thousand USD in 2024. A notable inflection point occurred after 2021, with charges rising from 59,643 thousand USD to over 120,000 thousand USD by 2024, indicating an increase in the company's fixed financial commitments.
- Fixed Charge Coverage Ratio
- The coverage ratio demonstrates a period of volatility followed by stabilization. The ratio improved from 4.52 in 2019 to a peak of 8.93 in 2021, reflecting a period of high efficiency in earnings relative to fixed costs. Despite an increase in fixed charges in subsequent years, the ratio remained robust, settling at 6.35 by September 30, 2024. This indicates that the company continues to generate earnings more than six times the amount required to cover its fixed charges, signaling a strong solvency position.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?