Fair Isaac (LTS:0TIQ) Operating Income : $689 Mil (TTM As of Mar. 2024)

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What is Fair Isaac Operating Income?

Fair Isaac's Operating Income for the three months ended in Mar. 2024 was $195 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $689 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Fair Isaac's Operating Income for the three months ended in Mar. 2024 was $195 Mil. Fair Isaac's Revenue for the three months ended in Mar. 2024 was $434 Mil. Therefore, Fair Isaac's Operating Margin % for the quarter that ended in Mar. 2024 was 44.91%.

Good Sign:

Fair Isaac Corp operating margin is expanding. Margin expansion is usually a good sign.

Fair Isaac's 5-Year average Growth Rate for Operating Margin % was 19.90% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Fair Isaac's annualized ROC % for the quarter that ended in Mar. 2024 was 40.30%. Fair Isaac's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 357.06%.

Fair Isaac Operating Income Historical Data

The historical data trend for Fair Isaac's Operating Income 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 Operating Income Chart

Fair Isaac Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Operating Income

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253.55

341.00

413.31

542.41

640.89

Fair Isaac Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Operating Income	Get a 7-Day Free Trial															159.76	177.03	165.70	151.36	194.84

Fair Isaac Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $689 Mil.

Fair Isaac (LTS:0TIQ) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Fair Isaac's annualized ROC % for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	779.364 * ( 1 - 24.86% )	/	( (1411.934	+	1494.265)	/ 2 )
=	585.6141096	/	1453.0995
=	40.30 %

where

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	1593.518	-	49.43	-	( 160.421	-	max(0, 433.109	-	565.263	+	160.421	))
=	1411.934

	Invested Capital		(Q: Mar. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	1703.117	-	73.185	-	( 135.667	-	max(0, 315.12	-	641.472	+	135.667	))
=	1494.265

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

Fair Isaac's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Mar. 2024 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2023		Q: Mar. 2024
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	795.308	/	( ( (29.322 + max(140.374, 0))	+	(55.507 + max(220.271, 0)) )	/	2 )
=	795.308	/	( ( 169.696	+	275.778 )	/	2 )
=	795.308	/	222.737
=	357.06 %

where Working Capital is:

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(367.478	+	0	+	37.364)	-	(49.43	+	146.822	+	68.216)
=	140.374

	Working Capital		(Q: Mar. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(469.025	+	0	+	36.78)	-	(73.185	+	143.544	+	68.805)
=	220.271

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Fair Isaac's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as:

Operating Margin %	=	Operating Income (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	194.841	/	433.809
	=	44.91 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Fair Isaac Operating Income Related Terms

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Fair Isaac (LTS:0TIQ) Business Description

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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.

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