Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Fair Isaac Corp., short-term (operating) activity 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).
- Receivables Turnover
- The receivables turnover ratio shows a generally stable pattern with minor fluctuations over the analyzed years. It began at 3.9 in 2019, dipped slightly to 3.87 in 2020, then increased to a peak of 4.27 in 2022, before declining again to 4.03 in 2024. This suggests that the company’s efficiency in collecting receivables improved up to 2022 but softened slightly thereafter.
- Payables Turnover
- The payables turnover ratio increased steadily from 14.57 in 2019 to a high of 17.49 in 2022, indicating the company was paying its suppliers more frequently in this period. However, after 2022, the ratio declined to 15.49 by 2024, suggesting a slowing in the rate of payment to creditors in the most recent years.
- Working Capital Turnover
- The working capital turnover ratio data is incomplete but reveals a downward trend based on available figures. From a high of 10.83 in 2020, the ratio decreased to 8.99 in 2022, 8.02 in 2023, and further to 7.24 in 2024. This indicates that the company's ability to generate revenue from its working capital has diminished over this period, pointing to potentially less efficient use of short-term assets and liabilities.
- Average Receivable Collection Period
- The average collection period remained steady at 94 days from 2019 to 2020, improved to lower values of 87 and 85 days in 2021 and 2022 respectively, reflecting quicker collection of receivables. However, this period then lengthened again to 94 days in 2023, with a slight improvement to 91 days in 2024, indicating some variability in cash collection efficiency over the years with a minor recent improvement.
- Average Payables Payment Period
- The average payables payment period showed a generally stable yet slightly fluctuating trend. It decreased from 25 days in 2019 to 21 days in 2022, signifying faster payments to suppliers. Thereafter, it increased modestly to 24 days by 2024, suggesting a slight lengthening in the time taken to pay creditors.
Turnover Ratios
Average No. Days
Receivables Turnover
Fair Isaac Corp., receivables turnover 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) | |||||||
| Revenues | 1,717,526) | 1,513,557) | 1,377,270) | 1,316,536) | 1,294,562) | 1,160,083) | |
| Accounts receivable, net | 426,642) | 387,947) | 322,410) | 312,107) | 334,180) | 297,427) | |
| Short-term Activity Ratio | |||||||
| Receivables turnover1 | 4.03 | 3.90 | 4.27 | 4.22 | 3.87 | 3.90 | |
| Benchmarks | |||||||
| Receivables Turnover, Competitors2 | |||||||
| Accenture PLC | 5.47 | 6.00 | 5.87 | 5.74 | 6.16 | — | |
| Adobe Inc. | 10.38 | 8.73 | 8.53 | 8.41 | 9.20 | — | |
| AppLovin Corp. | 3.33 | 3.44 | 4.01 | 5.43 | — | — | |
| Cadence Design Systems Inc. | 6.82 | 8.36 | 7.32 | 8.85 | 7.93 | — | |
| CrowdStrike Holdings Inc. | 3.58 | 3.58 | 3.94 | 3.66 | 2.92 | — | |
| Datadog Inc. | 4.48 | 4.18 | 4.19 | 3.83 | 3.69 | — | |
| International Business Machines Corp. | 9.22 | 8.57 | 9.25 | 8.49 | 10.32 | — | |
| Intuit Inc. | 35.63 | 35.48 | 28.53 | 24.64 | 51.54 | — | |
| Microsoft Corp. | 4.31 | 4.35 | 4.48 | 4.42 | 4.47 | — | |
| Oracle Corp. | 6.73 | 7.22 | 7.13 | 7.48 | 7.04 | — | |
| Palantir Technologies Inc. | 4.98 | 6.10 | 7.38 | 8.08 | 6.96 | — | |
| Palo Alto Networks Inc. | 3.07 | 2.80 | 2.57 | 3.43 | 3.29 | — | |
| Salesforce Inc. | 3.05 | 2.92 | 2.72 | 2.73 | 2.77 | — | |
| ServiceNow Inc. | 4.90 | 4.41 | 4.20 | 4.24 | 4.48 | — | |
| Synopsys Inc. | 6.56 | 6.17 | 6.38 | 7.40 | 4.72 | — | |
| Workday Inc. | 4.43 | 3.96 | 4.14 | 4.18 | 4.13 | — | |
| Receivables Turnover, Sector | |||||||
| Software & Services | 5.04 | 5.11 | 5.18 | 5.22 | 5.58 | — | |
| Receivables Turnover, Industry | |||||||
| Information Technology | 6.95 | 7.43 | 7.41 | 7.51 | 7.92 | — | |
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
Receivables turnover = Revenues ÷ Accounts receivable, net
= 1,717,526 ÷ 426,642 = 4.03
2 Click competitor name to see calculations.
- Revenue Trends
- Revenues have shown a consistent upward trend over the six-year period. Starting from approximately 1,160 million USD in 2019, revenues increased steadily each year, reaching about 1,717 million USD in 2024. This growth represents an overall strengthening in sales or service income, with particular acceleration noted in the last two years.
- Accounts Receivable, Net
- The net accounts receivable balance also increased over the same period, starting at around 297 million USD in 2019 and rising to approximately 427 million USD in 2024. While there were minor fluctuations, the general trend is an increase in receivables, which could indicate growing credit sales or longer collection periods.
- Receivables Turnover Ratio
- The receivables turnover ratio, measuring the efficiency of credit collection, displays some variability over the period. It began near 3.9 in 2019, peaked at 4.27 in 2022, indicating improved collection efficiency, but then declined slightly to 3.9 in 2023 before recovering to 4.03 in 2024. This suggests relatively stable collection processes with minor fluctuations in turnover speed.
- Overall Insights
- The simultaneous increase in revenues and accounts receivable, accompanied by relatively stable receivables turnover ratios, suggests that while sales are growing, the efficiency of collecting those sales remains generally steady. The moderate decline and subsequent recovery in turnover ratio in recent years may merit closer monitoring to ensure collection processes remain effective as the company expands.
Payables Turnover
Fair Isaac Corp., payables turnover 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) | |||||||
| Cost of revenues | 348,206) | 311,053) | 302,174) | 332,462) | 361,142) | 336,845) | |
| Accounts payable | 22,473) | 19,009) | 17,273) | 20,749) | 23,033) | 23,118) | |
| Short-term Activity Ratio | |||||||
| Payables turnover1 | 15.49 | 16.36 | 17.49 | 16.02 | 15.68 | 14.57 | |
| Benchmarks | |||||||
| Payables Turnover, Competitors2 | |||||||
| Accenture PLC | 15.94 | 17.41 | 16.37 | 15.03 | 22.48 | — | |
| Adobe Inc. | 6.53 | 7.50 | 5.71 | 5.98 | 5.63 | — | |
| AppLovin Corp. | 2.07 | 2.85 | 4.60 | 3.83 | — | — | |
| Cadence Design Systems Inc. | 116.56 | 4.77 | 7.89 | — | — | — | |
| CrowdStrike Holdings Inc. | 26.82 | 13.25 | 8.05 | 19.03 | 105.30 | — | |
| Datadog Inc. | 4.79 | 4.67 | 14.77 | 9.27 | 6.10 | — | |
| International Business Machines Corp. | 6.75 | 6.67 | 6.87 | 6.54 | 7.75 | — | |
| Intuit Inc. | 4.81 | 4.93 | 3.26 | 2.70 | 4.52 | — | |
| Microsoft Corp. | 3.37 | 3.64 | 3.30 | 3.44 | 3.68 | — | |
| Oracle Corp. | 6.42 | 11.27 | 6.74 | 10.54 | 12.46 | — | |
| Palantir Technologies Inc. | 5,495.05 | 35.56 | 9.12 | 4.53 | 21.55 | — | |
| Palo Alto Networks Inc. | 17.71 | 14.43 | 13.43 | 22.41 | 15.72 | — | |
| Salesforce Inc. | — | — | — | — | — | — | |
| ServiceNow Inc. | 33.63 | 15.25 | 5.74 | 15.20 | 28.83 | — | |
| Synopsys Inc. | 6.01 | 7.84 | 28.30 | 31.44 | 26.49 | — | |
| Workday Inc. | 22.71 | 11.16 | 25.74 | 15.85 | 18.51 | — | |
| Payables Turnover, Sector | |||||||
| Software & Services | 5.56 | 6.20 | 5.57 | 5.74 | 6.64 | — | |
| Payables Turnover, Industry | |||||||
| Information Technology | 4.26 | 4.78 | 4.25 | 4.63 | 4.91 | — | |
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
Payables turnover = Cost of revenues ÷ Accounts payable
= 348,206 ÷ 22,473 = 15.49
2 Click competitor name to see calculations.
- Cost of Revenues
- The cost of revenues experienced some fluctuation over the analyzed period. Starting at 336,845 thousand USD in 2019, it increased to a peak of 361,142 thousand USD in 2020. This was followed by a decline through 2021 and 2022, reaching its lowest point at 302,174 thousand USD. Subsequently, the cost rose again in 2023 and 2024, with the latter year showing a value of 348,206 thousand USD. Overall, the cost of revenues shows a cycle of rise, decline, and recovery.
- Accounts Payable
- Accounts payable exhibited a general downward trend from 23,118 thousand USD in 2019 to a low of 17,273 thousand USD in 2022. This was followed by a recovery phase reflected in increases in 2023 and 2024, with the amount reaching 22,473 thousand USD by the end of the period. This pattern suggests a cautious approach to managing payables initially, followed by a trend toward increased liabilities in the latter years.
- Payables Turnover Ratio
- The payables turnover ratio showed a consistent upward trend from 14.57 in 2019 to a maximum of 17.49 in 2022, indicating an increase in the frequency of paying off accounts payable. However, this ratio declined in the last two periods, falling to 15.49 in 2024. This decline may reflect a lengthening of payment terms or slower payment practices after peaking in 2022.
Working Capital Turnover
Fair Isaac Corp., working capital turnover 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 | 617,413) | 556,448) | 484,715) | 550,974) | 534,078) | 455,706) | |
| Less: Current liabilities | 380,285) | 367,688) | 331,459) | 559,207) | 414,511) | 490,828) | |
| Working capital | 237,128) | 188,760) | 153,256) | (8,233) | 119,567) | (35,122) | |
| Revenues | 1,717,526) | 1,513,557) | 1,377,270) | 1,316,536) | 1,294,562) | 1,160,083) | |
| Short-term Activity Ratio | |||||||
| Working capital turnover1 | 7.24 | 8.02 | 8.99 | — | 10.83 | — | |
| Benchmarks | |||||||
| Working Capital Turnover, Competitors2 | |||||||
| Accenture PLC | 34.49 | 11.93 | 15.07 | 12.77 | 8.71 | — | |
| Adobe Inc. | 30.25 | 6.85 | 20.28 | 9.09 | 4.89 | — | |
| AppLovin Corp. | 3.75 | 4.89 | 2.07 | 1.08 | — | — | |
| Cadence Design Systems Inc. | 1.75 | 10.61 | 9.92 | 4.01 | 3.94 | — | |
| CrowdStrike Holdings Inc. | 1.48 | 1.46 | 1.25 | 0.61 | 0.71 | — | |
| Datadog Inc. | 0.88 | 0.98 | 1.06 | 0.77 | 0.42 | — | |
| International Business Machines Corp. | 46.83 | — | — | — | — | — | |
| Intuit Inc. | 7.45 | 8.13 | 8.98 | 3.85 | 1.73 | — | |
| Microsoft Corp. | 7.12 | 2.65 | 2.66 | 1.76 | 1.30 | — | |
| Oracle Corp. | — | — | 3.50 | 1.29 | 1.12 | — | |
| Palantir Technologies Inc. | 0.58 | 0.66 | 0.78 | 0.70 | 0.66 | — | |
| Palo Alto Networks Inc. | — | — | — | — | 1.40 | — | |
| Salesforce Inc. | 14.27 | 62.21 | 24.95 | 5.11 | 15.29 | — | |
| ServiceNow Inc. | 13.25 | 21.77 | 11.16 | 21.76 | 5.76 | — | |
| Synopsys Inc. | 1.60 | 13.12 | 21.34 | 10.65 | 9.00 | — | |
| Workday Inc. | 1.49 | 1.79 | 35.15 | 8.31 | 28.97 | — | |
| Working Capital Turnover, Sector | |||||||
| Software & Services | 9.68 | 5.05 | 4.64 | 2.71 | 2.16 | — | |
| Working Capital Turnover, Industry | |||||||
| Information Technology | 8.80 | 5.76 | 6.43 | 4.29 | 3.29 | — | |
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
Working capital turnover = Revenues ÷ Working capital
= 1,717,526 ÷ 237,128 = 7.24
2 Click competitor name to see calculations.
- Working Capital
- The working capital exhibits notable fluctuations over the periods analyzed. Initially, it was a negative figure of -35,122 thousand USD in 2019, indicating potential liquidity challenges. However, a significant improvement occurred in 2020, with working capital rising to 119,567 thousand USD. This positive trend was not consistent, as it declined again in 2021 to -8,233 thousand USD, returning near negative territory. Subsequently, there was a strong recovery with continuous growth in 2022, 2023, and 2024, reaching 237,128 thousand USD by the latest period, the highest point observed in the dataset.
- Revenues
- Revenues demonstrated steady growth throughout the entire period. Starting at 1,160,083 thousand USD in 2019, revenues increased consistently each year. By 2024, revenues reached 1,717,526 thousand USD, representing a growth of approximately 48% over the six-year span. This upward trajectory reflects sustained business expansion or increased sales performance.
- Working Capital Turnover Ratio
- The working capital turnover ratio, reflecting efficiency in using working capital to generate sales, shows a declining trend after 2020. In 2020, the ratio was 10.83, indicating high efficiency in generating revenues relative to working capital. By 2022, this ratio declined to 8.99, further decreasing in 2023 to 8.02, and reaching 7.24 in 2024. This trend suggests that while revenues continue to increase, the relative efficiency of working capital usage to generate those revenues is diminishing, potentially due to the increasing working capital base.
- Summary of Insights
- The data reveals a company experiencing improving liquidity after initial volatility, as evidenced by the working capital moving from negative to increasingly positive values. Concurrent revenue growth is strong and consistent, signaling effective sales expansion. However, the declining working capital turnover ratio indicates a reduction in working capital utilization efficiency, suggesting the company is tying up more capital to support revenue growth or encountering changes in asset or liability management practices. Continuous monitoring of working capital management is advisable to sustain operational efficiency despite growing revenues.
Average Receivable Collection Period
Fair Isaac Corp., average receivable collection period 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 | |||||||
| Receivables turnover | 4.03 | 3.90 | 4.27 | 4.22 | 3.87 | 3.90 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average receivable collection period1 | 91 | 94 | 85 | 87 | 94 | 94 | |
| Benchmarks (no. days) | |||||||
| Average Receivable Collection Period, Competitors2 | |||||||
| Accenture PLC | 67 | 61 | 62 | 64 | 59 | — | |
| Adobe Inc. | 35 | 42 | 43 | 43 | 40 | — | |
| AppLovin Corp. | 110 | 106 | 91 | 67 | — | — | |
| Cadence Design Systems Inc. | 54 | 44 | 50 | 41 | 46 | — | |
| CrowdStrike Holdings Inc. | 102 | 102 | 93 | 100 | 125 | — | |
| Datadog Inc. | 81 | 87 | 87 | 95 | 99 | — | |
| International Business Machines Corp. | 40 | 43 | 39 | 43 | 35 | — | |
| Intuit Inc. | 10 | 10 | 13 | 15 | 7 | — | |
| Microsoft Corp. | 85 | 84 | 81 | 83 | 82 | — | |
| Oracle Corp. | 54 | 51 | 51 | 49 | 52 | — | |
| Palantir Technologies Inc. | 73 | 60 | 49 | 45 | 52 | — | |
| Palo Alto Networks Inc. | 119 | 130 | 142 | 106 | 111 | — | |
| Salesforce Inc. | 120 | 125 | 134 | 134 | 132 | — | |
| ServiceNow Inc. | 74 | 83 | 87 | 86 | 82 | — | |
| Synopsys Inc. | 56 | 59 | 57 | 49 | 77 | — | |
| Workday Inc. | 82 | 92 | 88 | 87 | 88 | — | |
| Average Receivable Collection Period, Sector | |||||||
| Software & Services | 72 | 71 | 70 | 70 | 65 | — | |
| Average Receivable Collection Period, Industry | |||||||
| Information Technology | 53 | 49 | 49 | 49 | 46 | — | |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 4.03 = 91
2 Click competitor name to see calculations.
- Receivables Turnover
- The receivables turnover ratio exhibits moderate fluctuations over the observed period. Starting at 3.9 in 2019, it remained nearly stable in 2020 at 3.87, followed by an increase to 4.22 in 2021 and a slight further rise to 4.27 in 2022. However, this upward trend reversed in 2023 with a decline back to 3.9, before a modest recovery reaching 4.03 in 2024. Overall, the ratio indicates some variability in the efficiency of receivables collection, with peak efficiency notably occurring in 2021 and 2022.
- Average Receivable Collection Period
- The average receivable collection period reflects an inverse pattern relative to the receivables turnover ratio, which is typical given the nature of these metrics. The period remained steady at 94 days in both 2019 and 2020, then improved to shorter collection times of 87 days in 2021 and 85 days in 2022. This improvement suggests enhanced efficiency in collecting receivables during that timeframe. However, in 2023, the collection period extended back to 94 days, indicating a slowdown in collection efficiency, before improving slightly to 91 days in 2024. This pattern aligns with the variations in the receivables turnover ratio, underscoring fluctuating collection dynamics over the years.
- Insights
- The data reveal an overall trend of improved receivables management between 2019 and 2022, as evidenced by increasing turnover and decreasing collection periods. The reversal of this trend in 2023 suggests potential challenges or changes in credit policies, customer payment behaviors, or operational factors affecting receivables collection. The partial recovery in 2024 indicates corrective measures or adjustments may be in place to restore efficiency. Continuous monitoring and further investigation into the underlying causes of these fluctuations would be advisable to sustain and enhance receivables performance.
Average Payables Payment Period
Fair Isaac Corp., average payables payment period 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 | |||||||
| Payables turnover | 15.49 | 16.36 | 17.49 | 16.02 | 15.68 | 14.57 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average payables payment period1 | 24 | 22 | 21 | 23 | 23 | 25 | |
| Benchmarks (no. days) | |||||||
| Average Payables Payment Period, Competitors2 | |||||||
| Accenture PLC | 23 | 21 | 22 | 24 | 16 | — | |
| Adobe Inc. | 56 | 49 | 64 | 61 | 65 | — | |
| AppLovin Corp. | 176 | 128 | 79 | 95 | — | — | |
| Cadence Design Systems Inc. | 3 | 77 | 46 | — | — | — | |
| CrowdStrike Holdings Inc. | 14 | 28 | 45 | 19 | 3 | — | |
| Datadog Inc. | 76 | 78 | 25 | 39 | 60 | — | |
| International Business Machines Corp. | 54 | 55 | 53 | 56 | 47 | — | |
| Intuit Inc. | 76 | 74 | 112 | 135 | 81 | — | |
| Microsoft Corp. | 108 | 100 | 111 | 106 | 99 | — | |
| Oracle Corp. | 57 | 32 | 54 | 35 | 29 | — | |
| Palantir Technologies Inc. | 0 | 10 | 40 | 81 | 17 | — | |
| Palo Alto Networks Inc. | 21 | 25 | 27 | 16 | 23 | — | |
| Salesforce Inc. | — | — | — | — | — | — | |
| ServiceNow Inc. | 11 | 24 | 64 | 24 | 13 | — | |
| Synopsys Inc. | 61 | 47 | 13 | 12 | 14 | — | |
| Workday Inc. | 16 | 33 | 14 | 23 | 20 | — | |
| Average Payables Payment Period, Sector | |||||||
| Software & Services | 66 | 59 | 66 | 64 | 55 | — | |
| Average Payables Payment Period, Industry | |||||||
| Information Technology | 86 | 76 | 86 | 79 | 74 | — | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 15.49 = 24
2 Click competitor name to see calculations.
The analysis of the payables turnover and average payables payment period over the span from September 30, 2019, to September 30, 2024, reveals several notable trends.
- Payables Turnover
- The payables turnover ratio shows a general upward trend from 14.57 in 2019 to a peak of 17.49 in 2022, indicating an increased efficiency in how the company manages its payables during this period. This suggests faster payment to suppliers or a higher volume of purchases relative to payables outstanding. However, after 2022, the ratio declines to 16.36 in 2023 and further to 15.49 in 2024, signaling a slowdown in payables turnover that may reflect either extended payment terms or changes in purchasing behavior.
- Average Payables Payment Period
- The average payment period complements the turnover ratio observations. It decreases from 25 days in 2019 to a low of 21 days in 2022, supporting the finding of quicker settlements of payables. Post-2022, the payment period extends again to 24 days by 2024, coinciding with the reduction in payables turnover. This suggests the company allowed more time to pay its suppliers in the latest years, potentially to conserve cash or manage liquidity.
Overall, the data reflects a phase of improving payables management efficiency with quicker payments up to 2022, followed by a moderate easing of payment practices through 2024. This shift could be indicative of strategic adjustments responding to internal financial policies or external economic conditions.