Formula Systems (1985) (Formula Systems (1985)) Cash-to-Debt : 0.68 (As of Sep. 2023)

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What is Formula Systems (1985) Cash-to-Debt?

Cash to Debt Ratio measures the financial strength of a company. It is calculated as a company's cash, cash equivalents, and marketable securities divide by its debt. Formula Systems (1985)'s cash to debt ratio for the quarter that ended in Sep. 2023 was 0.68.

If Cash to Debt ratio is less than 1, the company cannot pay off its debt using the cash in hand. Here we can see, Formula Systems (1985) couldn't pay off its debt using the cash in hand for the quarter that ended in Sep. 2023.

The historical rank and industry rank for Formula Systems (1985)'s Cash-to-Debt or its related term are showing as below:

FORTY' s Cash-to-Debt Range Over the Past 10 Years
Min: 0.52 Med: 0.72 Max: 1.4
Current: 0.68

During the past 13 years, Formula Systems (1985)'s highest Cash to Debt Ratio was 1.40. The lowest was 0.52. And the median was 0.72.

FORTY's Cash-to-Debt is ranked worse than
70.34% of 2792 companies
in the Software industry
Industry Median: 2.41 vs FORTY: 0.68

Formula Systems (1985) Cash-to-Debt Historical Data

The historical data trend for Formula Systems (1985)'s Cash-to-Debt 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.

Note: An indication of "No Debt" does not necessarily mean that the company has no debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Formula Systems (1985) Cash-to-Debt Chart

Formula Systems (1985) Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Cash-to-Debt

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0.77

0.67

0.80

0.72

0.74

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
Cash-to-Debt	Get a 7-Day Free Trial															0.66	0.74	0.69	0.65	0.68

Competitive Comparison of Formula Systems (1985)'s Cash-to-Debt

For the Information Technology Services subindustry, Formula Systems (1985)'s Cash-to-Debt, along with its competitors' market caps and Cash-to-Debt 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 Cash-to-Debt Distribution in the Software Industry

For the Software industry and Technology sector, Formula Systems (1985)'s Cash-to-Debt distribution charts can be found below:

* The bar in red indicates where Formula Systems (1985)'s Cash-to-Debt falls into.

Formula Systems (1985) Cash-to-Debt Calculation

This is the ratio of a company's Cash, Cash Equivalents, Marketable Securities to its debt. The debt includes the Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation. This ratio measures the financial strength of a company. This ratio is updated quarterly.

Formula Systems (1985)'s Cash to Debt Ratio for the fiscal year that ended in Dec. 2022 is calculated as:

Cash to Debt Ratio	=	Cash, Cash Equivalents, Marketable Securities	/	Total Debt
	=	Cash, Cash Equivalents, Marketable Securities	/	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)
	=	569.056	/	(271.672	+	500.472)
	=	0.74

Formula Systems (1985)'s Cash to Debt Ratio for the quarter that ended in Sep. 2023 is calculated as:

Cash to Debt Ratio	=	Cash, Cash Equivalents, Marketable Securities	/	Total Debt
	=	Cash, Cash Equivalents, Marketable Securities	/	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)
	=	469.11	/	(276.166	+	418.291)
	=	0.68

Formula Systems (1985) (NAS:FORTY) Cash-to-Debt Explanation

If Cash to Debt ratio is greater than 1, the company can pay off its debt using the cash in hand. If it is smaller than 1, it means the company has more debt than the cash in hands. In this case, it is important to look the the company's Interest Coverage. Ben Graham requires that a company must have an Interest Coverage of at least 5.

Formula Systems (1985) Cash-to-Debt 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 » Cash-to-Debt

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.