Gross Margin % is calculated as gross profit divided by its revenue. Fair Isaac's Gross Profit for the
three
months ended in Dec. 2023 was $299 Mil. Fair Isaac's Revenue for the
three
months ended in Dec. 2023 was $382 Mil. Therefore, Fair Isaac's Gross Margin % for the quarter that ended in Dec. 2023 was 78.15%.
The historical rank and industry rank for Fair Isaac's Gross Margin % or its related term are showing as below:
FICO'
s Gross Margin % Range Over the Past 10 Years
Min: 67.75 Med: 70.44 Max: 79.5
Current: 79.5
During the past 13 years, the highestGross Margin % of Fair Isaac was 79.50%. The lowest was 67.75%. And the median was 70.44%.
FICO's Gross Margin % is ranked better than 86.95% of 2628
companies
in the Software industry
Industry Median: 41.685
vs FICO: 79.50
Fair Isaac had a gross margin of 78.15% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Fair Isaac was 3.00% per year.
Fair Isaac Gross Margin % Historical Data
The historical data trend for Fair Isaac's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Fair Isaac's Gross Margin %
For the Software - Application subindustry, Fair Isaac's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Fair Isaac's Gross Margin % Distribution in the Software Industry
For the Software industry and Technology sector, Fair Isaac's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Fair Isaac's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Fair Isaac (NYSE:FICO) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Fair Isaac had a gross margin of 78.15% for the quarter that ended in Dec. 2023 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Fair Isaac Gross Margin % Related Terms
Thank you for viewing the detailed overview of Fair Isaac's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Founded in 1956, Fair Isaac Corporation is a leading applied analytics company. Fair Isaac is primarily known for its FICO credit scores, which is a widely used industry benchmark to determine the creditworthiness of an individual consumer. The firm's credit scores business accounts for most of the firm's profits and consists of business-to-business and business-to-consumer offerings. In addition to scores, Fair Isaac also sells software primarily to financial institutions for areas such as analytics, decision-making, customer workflows, and fraud.
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