Formula Systems (1985)'s Days Sales Outstanding for the
three
months ended in Mar. 2026 was 99.45.
Formula Systems (1985)'s Days Inventory for the
three
months ended in Mar. 2026 was 5.1.
Formula Systems (1985)'s Days Payable for the
three
months ended in Mar. 2026 was 56.3.
Therefore, Formula Systems (1985)'s Cash Conversion Cycle (CCC) for the
three
months ended in Mar. 2026 was 48.25.
Formula Systems (1985) (FRA:FSY) 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.
Formula Systems (1985) Cash Conversion Cycle Related Terms
Formula Systems (1985) Cash Conversion Cycle Historical Data
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The historical data trend for Formula Systems (1985)'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.
Formula Systems (1985) Cash Conversion Cycle Chart
FRA:FSY vs IBM, ACN, FISV: Cash Conversion Cycle Comparison
For the Information Technology Services subindustry, Formula Systems (1985)'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.
Formula Systems (1985) Cash Conversion Cycle vs Software Industry
For the Software industry and Technology sector, Formula Systems (1985)'s Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Formula Systems (1985)'s Cash Conversion Cycle falls into.
Formula Systems (1985) 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.
Formula Systems (1985)'s Cash Conversion Cycle for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Formula Systems (1985) (FRA:FSY) has a Cash Conversion Cycle of 48.25 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Formula Systems (1985) and its competitors.
Is Formula Systems (1985)'s Cash Conversion Cycle too high?
Formula Systems (1985)'s current Cash Conversion Cycle is 48.25. The Software industry median Cash Conversion Cycle is 32.23. Formula Systems (1985)'s value of 48.25 is 49.7% above this industry median. Overall, Formula Systems (1985) has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Formula Systems (1985)'s Cash Conversion Cycle compare to IBM and ACN?
Formula Systems (1985)'s Cash Conversion Cycle of 48.25 can be compared against companies in the Software industry. The industry median Cash Conversion Cycle is 32.23. Formula Systems (1985)'s value of 48.25 is 49.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Conversion Cycle for a Software company?
The median Cash Conversion Cycle among Software companies is 32.23, based on 2,804 companies in the industry. Companies in the top quartile (top 25%) have a Cash Conversion Cycle significantly above this median, while those in the bottom quartile fall well below. However, Cash Conversion Cycle should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Formula Systems (1985)'s current Cash Conversion Cycle of 48.25 is 49.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Conversion Cycle mean?
A high Cash Conversion Cycle can signal that a stock is expensive relative to its fundamentals. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Formula Systems (1985) and its competitors. For the Software industry, the median Cash Conversion Cycle is 32.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formula Systems (1985)'s current Cash Conversion Cycle is 48.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Formula Systems (1985) stock overvalued right now?
Based on GuruFocus' analysis, Formula Systems (1985) (FRA:FSY) is currently considered Modestly Undervalued. The stock's GF Value™ is €120.75, compared to a current price of €87.50 — trading 27.5% below its estimated fair value. The current Cash Conversion Cycle is 48.25 and 49.7% above the Software industry median of 32.23. Formula Systems (1985)'s overall GF Score™ is 71/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Conversion Cycle calculated?
Cash Conversion Cycle is calculated from a company's financial statements. For Formula Systems (1985) (FRA:FSY), the current Cash Conversion Cycle is 48.25 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Formula Systems (1985) (FRA:FSY) Overvalued in 2026?
Based on GuruFocus' analysis, Formula Systems (1985) stock appears to be undervalued.
The current stock price of €87.50 is trading 27.5% below its estimated GF Value™ of €120.75.
GuruFocus considers Formula Systems (1985) to be Modestly Undervalued.
Key valuation signals for FRA:FSY:
Cash Conversion Cycle: 48.25
GF Value™: €120.75 vs. price of €87.50 (27.5% below fair value)
Industry Position: 49.7% above the Software median
No single metric tells the full story. See the FRA:FSY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Formula Systems (1985) Ltd is an information technology company that is principally engaged through its directly and indirectly held investees in providing software consulting services, selling and marketing computer-based business solutions and hardware products from a wide range of domestic and international manufacturers, as well as developing proprietary software solutions. It delivers solutions in Israel and in numerous countries to customers with complex IT services needs. It designs and implements IT solutions and software systems that improve the productivity of customers' existing IT assets, enable them to effectively manage their operations and reduce their business risks in the face of changing business environments.
71GF Score
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