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Fair Isaac (LTS:0TIQ) Cash Conversion Cycle : 68.34 (As of Mar. 2024)


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What is Fair Isaac Cash Conversion Cycle?

Cash Conversion Cycle is one of several measures of management effectiveness. It equals Days Sales Outstanding + Days Inventory - Days Payable.

Fair Isaac's Days Sales Outstanding for the three months ended in Mar. 2024 was 87.98.
Fair Isaac's Days Inventory for the three months ended in Mar. 2024 was 0.
Fair Isaac's Days Payable for the three months ended in Mar. 2024 was 19.64.
Therefore, Fair Isaac's Cash Conversion Cycle (CCC) for the three months ended in Mar. 2024 was 68.34.


Fair Isaac Cash Conversion Cycle Historical Data

The historical data trend for Fair Isaac's Cash Conversion Cycle 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.

* Premium members only.

Fair Isaac Cash Conversion Cycle Chart

Fair Isaac Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 33.65 47.72 65.56 61.12 64.36

Fair Isaac Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cash Conversion Cycle Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 59.98 63.15 70.65 69.66 68.34

Competitive Comparison of Fair Isaac's Cash Conversion Cycle

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

For the Software industry and Technology sector, Fair Isaac's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Fair Isaac's Cash Conversion Cycle falls into.



Fair Isaac Cash Conversion Cycle Calculation

Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.

Cash Conversion Cycle is one of several measures of management effectiveness.

Fair Isaac's Cash Conversion Cycle for the fiscal year that ended in Sep. 2023 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=85.65+0-21.29
=64.36

Fair Isaac's Cash Conversion Cycle for the quarter that ended in Mar. 2024 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=87.98+0-19.64
=68.34

* 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.


Fair Isaac  (LTS:0TIQ) Cash Conversion Cycle Explanation

Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.


Be Aware

CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.

The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.


Fair Isaac Cash Conversion Cycle Related Terms

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Fair Isaac (LTS:0TIQ) Business Description

Traded in Other Exchanges
Address
5 West Mendenhall, Suite 105, Bozeman, MT, USA, 59715
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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