Formula Systems (1985) (Formula Systems (1985)) Days Inventory : 7.05 (As of Sep. 2023)

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What is Formula Systems (1985) Days Inventory?

Days Inventory is also known as Days Sales of Inventory (DSI). Formula Systems (1985)'s Average Total Inventories for the three months ended in Sep. 2023 was $38 Mil. Formula Systems (1985)'s Cost of Goods Sold for the three months ended in Sep. 2023 was $495 Mil. Hence, Formula Systems (1985)'s Days Inventory for the three months ended in Sep. 2023 was 7.05.

The historical rank and industry rank for Formula Systems (1985)'s Days Inventory or its related term are showing as below:

FORTY' s Days Inventory Range Over the Past 10 Years
Min: 1.13 Med: 1.76 Max: 6.83
Current: 6.83

During the past 13 years, Formula Systems (1985)'s highest Days Inventory was 6.83. The lowest was 1.13. And the median was 1.76.

FORTY's Days Inventory is ranked better than
67.11% of 1563 companies
in the Software industry
Industry Median: 19.64 vs FORTY: 6.83

Formula Systems (1985)'s Days Inventory increased from Sep. 2022 (7.02) to Sep. 2023 (7.05). It might indicate that Formula Systems (1985)'s sales slowed down.

Inventory Turnover measures how fast the company turns over its inventory within a year. Formula Systems (1985)'s Inventory Turnover for the three months ended in Sep. 2023 was 12.94.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Formula Systems (1985)'s Inventory-to-Revenue for the three months ended in Sep. 2023 was 0.06.

Formula Systems (1985) Days Inventory Historical Data

The historical data trend for Formula Systems (1985)'s Days Inventory 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.

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Formula Systems (1985) Days Inventory Chart

Formula Systems (1985) Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Days Inventory

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1.13

1.74

4.01

4.48

5.28

Formula Systems (1985) Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Days Inventory	Get a 7-Day Free Trial															7.02	6.58	6.62	7.20	7.05

Competitive Comparison of Formula Systems (1985)'s Days Inventory

For the Information Technology Services subindustry, Formula Systems (1985)'s Days Inventory, along with its competitors' market caps and Days Inventory 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.

Formula Systems (1985)'s Days Inventory Distribution in the Software Industry

For the Software industry and Technology sector, Formula Systems (1985)'s Days Inventory distribution charts can be found below:

* The bar in red indicates where Formula Systems (1985)'s Days Inventory falls into.

Formula Systems (1985) Days Inventory Calculation

Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Formula Systems (1985)'s Days Inventory for the fiscal year that ended in Dec. 2022 is calculated as

	Days Inventory (A: Dec. 2022 )
=	Average Total Inventories					/	Cost of Goods Sold	*	Days in Period
=	( (Total Inventories (A: Dec. 2021 )	+	Total Inventories (A: Dec. 2022 ))	/	count )	/	Cost of Goods Sold (A: Dec. 2022 )	*	Days in Period
=	( (21.221	+	35.181)	/	2 )	/	1949.892	*	365
=	28.201					/	1949.892	*	365
=	5.28

Formula Systems (1985)'s Days Inventory for the quarter that ended in Sep. 2023 is calculated as:

	Days Inventory (Q: Sep. 2023 )
=	Average Total Inventories					/	Cost of Goods Sold	*	Days in Period
=	( (Total Inventories (Q: Jun. 2023 )	+	Total Inventories (Q: Sep. 2023 ))	/	count )	/	Cost of Goods Sold (Q: Sep. 2023 )	*	Days in Period
=	( (39.374	+	37.156)	/	2 )	/	495.222	*	365 / 4
=	38.265					/	495.222	*	365 / 4
=	7.05

Formula Systems (1985) (NAS:FORTY) Days Inventory Explanation

Days Inventory indicates the liquidity of the inventory. Generally, a lower Days Inventory is preferred as it indicates a shorter duration to clear off the inventory. An increase of the ratio may indicate the company's sales slowed. Similar ratios related to Days Inventory are:

1. Inventory Turnover measures how fast the company turns over its inventory within a year.

Formula Systems (1985)'s Inventory Turnover for the three months ended in Sep. 2023 is calculated as

Inventory Turnover	=	Cost of Goods Sold	/	Average Total Inventories
	=	495.222	/	38.265
	=	12.94

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Formula Systems (1985)'s Inventory to Revenue for the three months ended in Sep. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories	/	Revenue
	=	38.265	/	654.839
	=	0.06

Be Aware

A lot of business are seasonable. It makes more sense to compare Days Inventory from the same period in the previous year instead of from the previous quarter.

Formula Systems (1985) Days Inventory Related Terms

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Formula Systems (1985) (Formula Systems (1985)) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Formula Systems (1985) Ltd (NAS:FORTY) » Definitions » Days Inventory

Comparable Companies

Traded in Other Exchanges

FORTY:Israel FSY:Germany FSY:Germany

Address

Yahadut Canada 1 Street, Or Yehuda, Tel Aviv, ISR, 6037501

Website

https://www.formulasystems.com

Formula Systems (1985) Ltd is a holding company that, through its subsidiaries, provides information technology services. The company organizes itself into three primary segments based on the subsidiary. The Matrix segment, which generates the majority of revenue, provides software development and existing software expansion services. The Sapiens segment provides software development services for the insurance industry. The Magic Software segment provides vendor management systems and workforce management services, which include accounting and finance, human resources, IT technology, and marketing and sales. Michpal; ZAP Group and Others. The majority of the company's revenue comes from Israel.