Fair Isaac Corp. (NYSE:FICO) 

The financial data reveals several distinct trends and fluctuations in key operational efficiency ratios over the examined periods.

Receivables Turnover Ratio

This ratio demonstrates variability across the periods, generally fluctuating between approximately 3.4 and 5.1. After starting near 3.9 in the earlier periods, it peaks around 5.1 in several quarters such as December 2021 and September 2024, indicating periods of more efficient receivables collection. There is a noticeable dip in some quarters, including March 2024 and December 2024, reflecting slower collection relative to sales during those times.

Payables Turnover Ratio

The payables turnover shows considerable fluctuation but generally maintains higher values than the receivables turnover ratio, mostly ranging between 10.8 and 22.8. There is a marked increase in payables turnover around March 2023, reaching a peak near 22.8, suggesting accelerated payments to suppliers during this period. Conversely, some lower ratios such as 10.83 in March 2020 indicate slower payment cycles. The ratio is somewhat volatile but consistently reflects promptness in settling payables relative to purchases.

Working Capital Turnover Ratio

This ratio exhibits significant volatility and some extreme outliers, notably a peak above 318 in March 2020, which may indicate a one-time event or reporting anomaly. Aside from that, typical values oscillate between 4.8 and 111.9 with multiple large spikes and troughs, complicating the interpretation of a consistent trend. However, most values tend to fall below 20 in many periods, suggesting periods of varying working capital efficiency in generating revenue.

Average Receivable Collection Period (Days)

The collection period generally oscillates between approximately 70 and 95 days. There is a gradual improvement noted early on, with reductions to the low 70s in some periods, indicating faster collection of receivables. However, towards the later periods, it shows an increase, reaching values above 95 days in several quarters, such as September 2023 and March 2025, implying a lengthening in the time taken to collect receivables, which could potentially impact cash flow.

Average Payables Payment Period (Days)

This metric shows relative stability, predominantly ranging between 20 and 25 days with minor fluctuations. The payment period tends to hover around three weeks, occasionally dropping to as low as 16 days (around March 2023) or rising slightly to 25 days. This consistent timeframe indicates steady practices in supplier payment scheduling without abrupt changes.

In summary, the data shows that receivables management has experienced fluctuations with moments of improved efficiency but also some slowing collection periods towards the end of the timeline. Payables management remains relatively consistent with moderate variability but generally stable payment intervals. Working capital turnover is highly volatile, suggesting variability in managing current assets and liabilities relative to sales, which may merit further investigation. The average days for receivables and payables reflect moderately stable operational cycles, though slight recent deterioration in receivables collection may impact working capital and liquidity management.

Revenues

Revenues exhibit significant variability over the analyzed periods, generally demonstrating an upward trend with intermittent fluctuations. From December 2018 to December 2019, revenues increased from approximately 262 million USD to nearly 298 million USD, showing moderate growth. This was followed by some volatility in early 2020, with revenues rising to approximately 374 million USD by September 2020, peaking substantially compared to previous quarters. Subsequently, revenues experienced fluctuations but maintained an overall upward trajectory, reaching nearly 499 million USD by March 2025. This pattern suggests growth with occasional quarterly variations, potentially reflecting seasonal influences or strategic business changes.

Accounts Receivable, Net

Accounts receivable values closely follow the revenue trend but exhibit a somewhat more irregular pattern. Initially, from December 2018 to December 2019, receivables increased in line with revenues, rising from about 248 million USD to 282 million USD. Thereafter, although accounts receivable generally increased, periods such as March 2021 and March 2023 showed noticeable reductions despite revenue growth, indicating possible improvements in collections or changes in credit policies. By March 2025, receivables reached approximately 493 million USD, corresponding to the peak revenue period, which suggests continued expansion but also an increase in outstanding customer balances.

Receivables Turnover Ratio

The receivables turnover ratio, available from mid-2019 onward, fluctuates between approximately 3.4 and 5.1 times per period. Higher turnover ratios around 5.1, observed intermittently, indicate more efficient collections of receivables during those quarters. Conversely, lower ratios near 3.4 suggest slower collections or increased credit sales. The ratio varies across quarters with no clear long-term directional trend, implying that while collection efficiency varies, it does not exhibit a sustained improvement or decline over the examined timeframe. However, lower turnover ratios in some more recent quarters coincide with increased accounts receivable balances, pointing to potential challenges in receivables management during periods of revenue growth.

Cost of Revenues

The cost of revenues shows some fluctuations over the observed quarterly periods. Starting at approximately 76 million USD, it increases to a peak around 93.7 million USD in September 2020. Afterwards, a declining trend is observed through the end of 2021, dropping to about 69 million USD in December 2021. Beginning with 2022, costs generally recover, peaking again at around 87 million USD in late 2024 before slightly decreasing toward the first quarter of 2025. This pattern suggests some seasonality or market fluctuations impacting production or delivery costs, with notable troughs in late 2021 and mid to late 2023.

Accounts Payable

Accounts payable exhibits variability without a clear long-term trend. The figures start near 20 million USD, rise significantly to around 32 million USD by the end of 2019, and then decrease to approximately 17 million USD by early 2022. From that point, values fluctuate within a range of about 14 million to 23 million USD. Although some quarter-to-quarter changes are pronounced, no persistent upward or downward trend is apparent over the entire period. This may reflect changes in supplier agreements, payment practices, or operational cycles.

Payables Turnover Ratio

The payables turnover ratio, with data available from mid-2019 onward, indicates how frequently payables are settled within a period. It begins at 14.57, dips to a low near 10.83 by December 2019, then climbs sharply to a peak of 22.82 in June 2023. Following this peak, the ratio declines gradually to around 14.66 by the first quarter of 2025. The general upward trend through mid-2023 suggests increasingly rapid payments to suppliers or efficient management of payables during this time. The subsequent decline may indicate an easing of payment pace or a change in credit terms.

The analysis of the quarterly financial data reveals several noteworthy patterns and trends relating to working capital, revenues, and the working capital turnover ratio over the observed periods.

Working Capital

Working capital experienced significant volatility throughout the reported quarters. Initially, it was negative, reaching as low as -57,505 thousand US dollars at the end of 2018, then underwent a gradual improvement, turning positive around late 2019. This positive trend strengthened considerably through 2020 and early 2021, highlighted by a peak exceeding 140,000 thousand US dollars in late 2021.

Subsequent quarters saw fluctuations, with some decreases notably in early 2022 and early 2023, but overall maintained a high positive level. From early 2023 onwards, working capital showed a robust upward trajectory, culminating at 381,668 thousand US dollars by the first quarter of 2025, indicating an enhancement in the company's short-term financial health and liquidity management.

Revenues

Revenues exhibited a generally positive growth trend over the time span. The starting point in late 2018 reported revenues of approximately 262,256 thousand US dollars, followed by fluctuations in the next few quarters with peaks and troughs but maintaining an upward incline overall.

The revenue line notably rose during 2020, especially in the third quarter, reaching over 374,000 thousand US dollars, reflecting a significant increase. After some variability, revenues continued to increase steadily from 2022 onward, culminating at nearly 499,000 thousand US dollars in early 2025, surpassing the initial values by a substantial margin and indicating strong sales and business growth momentum.

Working Capital Turnover Ratio

The working capital turnover ratio displayed marked instability, with missing values in the earlier quarters which limits comprehensive trend analysis for that period. Available data from late 2019 shows extremely high values such as 63.09 and 318.71, but these are not maintained in subsequent quarters.

Following this, there was a general decline and stabilization phase, with ratios fluctuating between approximately 4.82 and 15.25. This suggests the company’s efficiency in using working capital to generate revenues has varied widely, with recent quarters indicating a more moderate and stable utilization rate.

In summary, the company’s working capital transformed from a negative to a strong positive position, supporting better liquidity. Revenues consistently increased, reflecting successful operational performance. The fluctuating working capital turnover ratio highlights variable efficiency in managing capital relative to revenue, though recent data suggests improved stability in this metric. Overall, the trends point to strengthening financial health with ongoing growth and enhanced working capital management.

The receivables turnover ratio and average receivable collection period both exhibit fluctuations over the analyzed periods, indicating variability in the company's efficiency in collecting receivables.

Receivables Turnover Ratio

The ratio starts around 3.9 in late 2018 and early 2019 and generally moves upward, peaking at 5.1 in Q4 2021. This suggests an improvement in the company's ability to collect receivables more frequently during this period. However, after this peak, the turnover ratio declines somewhat, demonstrating a decrease in collection efficiency, falling to as low as 3.42 in Q1 2024 before a slight rebound to 5.06 in Q4 2024, and then dropping again.

Average Receivable Collection Period (Days)

This metric inversely reflects the turnover ratio, with collection days decreasing from 94 days in late 2018 to a low of 72 days in Q4 2021, evidencing faster collection of receivables. Following this period, the collection period tends to lengthen, reaching a high of 107 days in Q1 2024, indicating slower collection times and potential challenges in managing receivables. Thereafter, the period fluctuates but maintains relatively higher values compared to the earlier low.

Overall Trends

Between late 2018 and late 2021, there is a trend towards improved receivables management, with increasing turnover and decreasing collection days. Post-2021, the data reveals some volatility and weakening in collection efficiency, with the turnover ratio declining and collection days increasing, which could imply changes in credit policy, customer payment behavior, or operational challenges affecting collections. The fluctuations observed suggest the need for close monitoring to maintain optimal receivables management going forward.

The payables turnover ratio shows considerable variability over the observed periods, starting at 14.57 and experiencing fluctuations with peaks and troughs throughout the timeline. After an initial decline to 10.83, the ratio moves upward, reaching values as high as 22.82 before settling into a range around 15 to 18 in the later periods. This pattern suggests that the frequency of payables being turned over has intermittent changes, perhaps influenced by operational or supplier-related factors.

In contrast, the average payables payment period, measured in days, generally demonstrates an inverse trend relative to the payables turnover ratio. Initially reported as 25 days, it increases to a high of 34 days and then decreases gradually, stabilizing around 20 to 25 days in subsequent quarters. This metric indicates the average time taken to settle payables, with shorter periods corresponding to higher turnover ratios as expected.

Relationship between Payables Turnover and Payment Period

The data illustrate a generally inverse relationship where increases in the payables turnover ratio coincide with decreases in the average payment period, revealing more efficient payment cycles during those times. Conversely, when the turnover ratio drops, there is an increase in the payment period, indicating slower payments to suppliers.

Trend Implications

The fluctuations suggest variations in cash management and supplier negotiation strategies across different quarters. The stabilization of both metrics in the latter periods may indicate a more consistent approach to managing payables.

Seasonal or Operational Factors

The periodic changes and occasional spikes could be attributed to seasonal business cycles or changes in purchasing patterns, though additional context would be required to confirm these influences.