Debt-to-Equity Ratio

A debt-to-equity ratio measures how much a company’s operations are financed by debt versus its own shareholders’ equity.

A negative value of -1.73x indicates that total liabilities exceed total assets, meaning the company has negative equity — a condition that typically signals financial distress. Compared to the sector median of 0.73x, FICO’s ratio sits in the 6th percentile among peers, showing it is far more leveraged (or in a worse equity position) than the vast majority of comparable firms. However, no trend data is available: the year-over-year change, quarter-over-quarter change, and the direction over the last eight quarters are all reported as N/A, so no conclusion can be drawn about whether the situation is improving or worsening. The combination of a deeply negative ratio with a lack of trend information leaves uncertainty — it is a clear red flag, but without context on direction, the risk cannot be fully assessed. This metric alone supports a cautious view, but it does not directly contradict the overall NEUTRAL verdict because other factors may offset the balance-sheet weakness.

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