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ReadyTech HoldingsASX:RDY 77 Debt-to-Equity is 0.47 as of Jun. 2026, which is 7% above its 10-year median of 0.44. GuruFocus rates ASX:RDY with a GF Score™ of 77/100 and a GF Value™ of A$2.99 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 2,241 Software companies, ReadyTech Holdings ranks worse than 68.81% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for ReadyTech Holdings's Debt-to-Equity or its related term are showing as below:
ASX:RDY'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0.31 Med: 0.44 Max: 0.85
Current: 0.47
During the past 8 years, the highest Debt-to-Equity Ratio of ReadyTech Holdings was 0.85. The lowest was 0.31. And the median was 0.44.
ASX:RDY's Debt-to-Equity is ranked worse than 68.81% of 2241
companies
in the Software industry
Industry Median: 0.21
vs ASX:RDY: 0.47
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
ReadyTech Holdings Debt-to-Equity Related Terms
ReadyTech Holdings Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for ReadyTech Holdings's Debt-to-Equity 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.
ASX:RDY vs CRM, SHOP, UBER: Debt-to-Equity Comparison
For the Software - Application subindustry, ReadyTech Holdings's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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.
ReadyTech Holdings Debt-to-Equity vs Software Industry
For the Software industry and Technology sector, ReadyTech Holdings's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where ReadyTech Holdings's Debt-to-Equity 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.
ReadyTech Holdings (ASX:RDY) has a Debt-to-Equity of 0.47 as of Jun. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on ReadyTech Holdings and its competitors. This is near median its historical median of 0.44. Over the past decade, ReadyTech Holdings' Debt-to-Equity has ranged from 0.31 to 0.85. According to the industry distribution chart, ReadyTech Holdings ranks #1542 out of 2241 companies in the Software industry, placing it in the top 68.8%.
Is ReadyTech Holdings' Debt-to-Equity too high?
ReadyTech Holdings' current Debt-to-Equity of 0.47 is near median its 10-year median of 0.44. Over the past 10 years, this metric has ranged from a low of 0.31 to a high of 0.85. The Software industry median Debt-to-Equity is 0.21. ReadyTech Holdings' value of 0.47 is 123.8% above this industry median. Based on the distribution chart, ReadyTech Holdings ranks #1542 out of 2241 companies in the Software industry, which is below the industry midpoint. Overall, ReadyTech Holdings has a GF Score™ of 77/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does ReadyTech Holdings' Debt-to-Equity compare to CRM and SHOP?
According to the Software industry distribution chart, ReadyTech Holdings ranks #1542 out of 2241 companies for Debt-to-Equity. This places ReadyTech Holdings in the lower half of its industry. The industry median Debt-to-Equity is 0.21. ReadyTech Holdings' value of 0.47 is 123.8% above this benchmark. Historically, ReadyTech Holdings' own Debt-to-Equity has ranged from 0.31 to 0.85 over the past decade. While the company's 10-year median is 0.44 vs. the industry median of 0.21, ReadyTech Holdings 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 Debt-to-Equity for a Software company?
The median Debt-to-Equity among Software companies is 0.21, based on 2,241 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ReadyTech Holdings's current Debt-to-Equity of 0.47 is 123.8% 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 Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on ReadyTech Holdings and its competitors. For the Software industry, the median Debt-to-Equity is 0.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ReadyTech Holdings's current Debt-to-Equity is 0.47, which is near median its own 10-year median of 0.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ReadyTech Holdings stock overvalued right now?
Based on GuruFocus' analysis, ReadyTech Holdings (ASX:RDY) is currently considered Possible Value Trap. The stock's GF Value™ is A$2.99, compared to a current price of A$1.50 — trading 49.8% below its estimated fair value. The current Debt-to-Equity is 0.47, which is near median its 10-year median of 0.44 and 123.8% above the Software industry median of 0.21. ReadyTech Holdings' overall GF Score™ is 77/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For ReadyTech Holdings (ASX:RDY), the current Debt-to-Equity is 0.47 as of Jun. 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 ReadyTech Holdings (ASX:RDY) Overvalued in 2026?
Based on GuruFocus' analysis, ReadyTech Holdings stock appears to be undervalued.
The current stock price of A$1.50 is trading 49.8% below its estimated GF Value™ of A$2.99.
GuruFocus considers ReadyTech Holdings to be Possible Value Trap.
Key valuation signals for ASX:RDY:
Debt-to-Equity: 0.47 (near median its 10-year median of 0.44)
GF Value™: A$2.99 vs. price of A$1.50 (49.8% below fair value)
Industry Position: 123.8% above the Software median (#1542 of 2241)
No single metric tells the full story. See the ASX:RDY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ReadyTech Holdings Ltd is a provider of people management software for educators, employers, and facilitators of career transitions. Its products are JR Plus, A2E, HR3, ePayroll, JR Gov, Aussiepay, and others. The company's operating segments include Education and Work pathways, Workforce Solutions, and Government and Justice. It generates maximum revenue from the Government and Justice. The education segment mainly provides products and services to tertiary education providers. Its Workforce segment provides products and services to a mid-sized company across various industries. The Government division provides government and justice case management software as a service solution to local governments, state governments, and justice departments.
77GF Score
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