Fair Isaac (Fair Isaac) Interest Coverage : 6.26 (As of Dec. 2023)

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What is Fair Isaac Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Fair Isaac's Operating Income for the three months ended in Dec. 2023 was $151 Mil. Fair Isaac's Interest Expense for the three months ended in Dec. 2023 was $-24 Mil. Fair Isaac's interest coverage for the quarter that ended in Dec. 2023 was 6.26. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Fair Isaac's Interest Coverage or its related term are showing as below:

FICO' s Interest Coverage Range Over the Past 10 Years
Min: 5.34 Med: 6.55 Max: 10.31
Current: 6.75

FICO's Interest Coverage is ranked worse than
73.31% of 1600 companies
in the Software industry
Industry Median: 29.505 vs FICO: 6.75

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Fair Isaac Interest Coverage Historical Data

The historical data trend for Fair Isaac's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Fair Isaac Interest Coverage Chart

Fair Isaac Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Interest Coverage

Get a 7-Day Free Trial

6.38

8.08

10.31

7.86

6.71

Fair Isaac Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															6.07	6.69	7.21	6.82	6.26

Competitive Comparison of Fair Isaac's Interest Coverage

For the Software - Application subindustry, Fair Isaac's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution in the Software Industry

For the Software industry and Technology sector, Fair Isaac's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Fair Isaac's Interest Coverage falls into.

Fair Isaac Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Fair Isaac's Interest Coverage for the fiscal year that ended in Sep. 2023 is calculated as

Here, for the fiscal year that ended in Sep. 2023, Fair Isaac's Interest Expense was $-96 Mil. Its Operating Income was $641 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,836 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Sep. 2023 )	/	Interest Expense (A: Sep. 2023 )
	=	-1	*	640.889	/	-95.546
	=	6.71

Fair Isaac's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Fair Isaac's Interest Expense was $-24 Mil. Its Operating Income was $151 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,821 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	151.359	/	-24.162
	=	6.26

The higher the ratio, the stronger the company's Financial Strength is.

Fair Isaac (NYSE:FICO) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Fair Isaac Interest Coverage Related Terms

Thank you for viewing the detailed overview of Fair Isaac's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Fair Isaac (Fair Isaac) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Fair Isaac Corp (NYSE:FICO) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

FICO1:Mexico FRI:Germany FRI:Germany

Address

5 West Mendenhall, Suite 105, Bozeman, MT, USA, 59715

Website

https://www.fico.com

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.

Executives

Steven P. Weber	officer: Interim Chief Financial Ofc.	5 WEST MENDENHALL, SUITE 105, BOZEMAN MT 59715
Eva Manolis	director	C/O SHUTTERFLY, INC., 2800 BRIDGE PARKWAY, REDWOOD CITY CA 94065
David A Rey	director	181 METRO DRIVE, SAN JOSE CA 95110
Michael S Leonard	officer: CAO and Vice President	181 METRO DRIVE, SAN JOSE CA 95110
Joanna Rees	director	LEAPFROG ENTERPRISES, INC., 6401 HOLLIS STREET SUITE 100, EMERYVILLE CA 94608
Braden R Kelly	director	181 METRO DRIVE, SAN JOSE CA 95110
Marc F Mcmorris	director	181 METRO DRIVE, SAN JOSE CA 95110
James M Wehmann	officer: Executive Vice President	181 METRO DRIVE, SAN JOSE CA 95110
Henry Tayloe Stansbury	director	C/O COUPA SOFTWARE INC., 1855 S. GRANT STREET, SAN MATEO CA 94402
Nikhil Behl	officer: Executive Vice President	601 108TH AVENUE NE, SUITE 1200, BELLEVUE WA 98004
Stephanie Covert	officer: Executive Vice President	181 METRO DR., SAN JOSE CA 95110
James Kirsner	director	5858 HORTON STREET, SUITE 350, EMERYVILLE CA 94608
Thomas A. Bowers	officer: Executive Vice President	181 METRO DR., #600, SAN JOSE CA 95110
Richard Deal	officer: Vice President	181 METRO DRIVE, SAN JOSE CA 95110
Mark R Scadina	officer: V.P., General Counsel & Sec.	181 METRO DRIVE, SAN JOSE CA 95110