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Formula Systems (1985)FRA:FSY +1.14%68 Cash Ratio is 0.92 as of Mar. 2026, which is 64% above its 10-year median of 0.56. GuruFocus rates FRA:FSY with a GF Score™ of 68/100 and a GF Value™ of €100.76 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 2,817 Software companies, Formula Systems (1985) ranks better than 54.81% on this metric.
Formula Systems (1985) has a Cash Ratio of 0.92. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for Formula Systems (1985)'s Cash Ratio or its related term are showing as below:
FRA:FSY'
s Cash Ratio Range Over the Past 10 Years
Min: 0.33 Med: 0.56 Max: 0.96
Current: 0.92
During the past 13 years, Formula Systems (1985)'s highest Cash Ratio was 0.96. The lowest was 0.33. And the median was 0.56.
FRA:FSY's Cash Ratio is ranked better than 54.81% of 2817
companies
in the Software industry
Industry Median: 0.78
vs FRA:FSY: 0.92
Formula Systems (1985) (FRA:FSY) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
* 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.
For the Information Technology Services subindustry, Formula Systems (1985)'s Cash Ratio, along with its competitors' market caps and Cash Ratio 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 Ratio vs Software Industry
For the Software industry and Technology sector, Formula Systems (1985)'s Cash Ratio distribution charts can be found below:
* The bar in red indicates where Formula Systems (1985)'s Cash Ratio falls into.
* 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 Ratio of 0.92 as of Mar. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Formula Systems (1985) and its competitors. This is 64% above median its historical median of 0.56. Over the past decade, Formula Systems (1985)'s Cash Ratio has ranged from 0.33 to 0.96. According to the industry distribution chart, Formula Systems (1985) ranks #1273 out of 2817 companies in the Software industry, placing it in the top 45.2%.
Is Formula Systems (1985)'s Cash Ratio too high?
Formula Systems (1985)'s current Cash Ratio of 0.92 is 64% above median its 10-year median of 0.56. Over the past 10 years, this metric has ranged from a low of 0.33 to a high of 0.96. The Software industry median Cash Ratio is 0.78. Formula Systems (1985)'s value of 0.92 is 17.9% above this industry median. Based on the distribution chart, Formula Systems (1985) ranks #1273 out of 2817 companies in the Software industry, which is above the industry midpoint. Overall, Formula Systems (1985) has a GF Score™ of 68/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Formula Systems (1985)'s Cash Ratio compare to IBM and ACN?
According to the Software industry distribution chart, Formula Systems (1985) ranks #1273 out of 2817 companies for Cash Ratio. This puts Formula Systems (1985) in the upper half of its industry. The industry median Cash Ratio is 0.78. Formula Systems (1985)'s value of 0.92 is 17.9% above this benchmark. Historically, Formula Systems (1985)'s own Cash Ratio has ranged from 0.33 to 0.96 over the past decade. While the company's 10-year median is 0.56 vs. the industry median of 0.78, Formula Systems (1985) has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for a Software company?
The median Cash Ratio among Software companies is 0.78, based on 2,817 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Formula Systems (1985)'s current Cash Ratio of 0.92 is 17.9% 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 Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Formula Systems (1985) and its competitors. For the Software industry, the median Cash Ratio is 0.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formula Systems (1985)'s current Cash Ratio is 0.92, which is 64% above median its own 10-year median of 0.56. 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 €100.76, compared to a current price of €88.50 — trading 12.2% below its estimated fair value. The current Cash Ratio is 0.92, which is 64% above median its 10-year median of 0.56 and 17.9% above the Software industry median of 0.78. Formula Systems (1985)'s overall GF Score™ is 68/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For Formula Systems (1985) (FRA:FSY), the current Cash Ratio is 0.92 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 €88.50 is trading 12.2% below its estimated GF Value™ of €100.76.
GuruFocus considers Formula Systems (1985) to be Modestly Undervalued.
Key valuation signals for FRA:FSY:
Cash Ratio: 0.92 (64% above median its 10-year median of 0.56)
GF Value™: €100.76 vs. price of €88.50 (12.2% below fair value)
Industry Position: 17.9% above the Software median (#1273 of 2817)
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.
68GF Score
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