Formula Systems (1985)FRA:FSY -1.12%68 Quick Ratio is 1.66 as of Mar. 2026, which is 18% above its 10-year median of 1.41. GuruFocus rates FRA:FSY with a GF Score™ of 68/100 and a GF Value™ of €100.75 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 2,864 Software companies, Formula Systems (1985) ranks worse than 51.26% on this metric.
Formula Systems (1985) has a quick ratio of 1.66. It generally indicates good short-term financial strength.
The historical rank and industry rank for Formula Systems (1985)'s Quick Ratio or its related term are showing as below:
FRA:FSY'
s Quick Ratio Range Over the Past 10 Years
Min: 1.17 Med: 1.41 Max: 1.88
Current: 1.66
During the past 13 years, Formula Systems (1985)'s highest Quick Ratio was 1.88. The lowest was 1.17. And the median was 1.41.
FRA:FSY's Quick Ratio is ranked worse than 51.26% of 2864
companies
in the Software industry
Industry Median: 1.7
vs FRA:FSY: 1.66
Formula Systems (1985) (FRA:FSY) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Formula Systems (1985) Quick Ratio Related Terms
Formula Systems (1985) Quick Ratio Historical Data
* 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 Quick Ratio, along with its competitors' market caps and Quick 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) Quick Ratio vs Software Industry
For the Software industry and Technology sector, Formula Systems (1985)'s Quick Ratio distribution charts can be found below:
* The bar in red indicates where Formula Systems (1985)'s Quick Ratio falls into.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Formula Systems (1985)'s Quick Ratio 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 Quick Ratio of 1.66 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Formula Systems (1985) and its competitors. This is 18% above median its historical median of 1.41. Over the past decade, Formula Systems (1985)'s Quick Ratio has ranged from 1.17 to 1.88. According to the industry distribution chart, Formula Systems (1985) ranks #1468 out of 2864 companies in the Software industry, placing it in the top 51.3%.
Is Formula Systems (1985)'s Quick Ratio too high?
Formula Systems (1985)'s current Quick Ratio of 1.66 is 18% above median its 10-year median of 1.41. Over the past 10 years, this metric has ranged from a low of 1.17 to a high of 1.88. The Software industry median Quick Ratio is 1.70. Formula Systems (1985)'s value of 1.66 is 2.4% below this industry median. Based on the distribution chart, Formula Systems (1985) ranks #1468 out of 2864 companies in the Software industry, which is below 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 Quick Ratio compare to IBM and ACN?
According to the Software industry distribution chart, Formula Systems (1985) ranks #1468 out of 2864 companies for Quick Ratio. This places Formula Systems (1985) in the lower half of its industry. The industry median Quick Ratio is 1.70. Formula Systems (1985)'s value of 1.66 is 2.4% below this benchmark. Historically, Formula Systems (1985)'s own Quick Ratio has ranged from 1.17 to 1.88 over the past decade. While the company's 10-year median is 1.41 vs. the industry median of 1.70, Formula Systems (1985) has consistently been below 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 Quick Ratio for a Software company?
The median Quick Ratio among Software companies is 1.70, based on 2,864 companies in the industry. Companies in the top quartile (top 25%) have a Quick Ratio significantly above this median, while those in the bottom quartile fall well below. However, Quick Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Formula Systems (1985)'s current Quick Ratio of 1.66 is 2.4% below 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 Quick Ratio mean?
A high Quick Ratio can signal that a stock is expensive relative to its fundamentals. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Formula Systems (1985) and its competitors. For the Software industry, the median Quick Ratio is 1.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formula Systems (1985)'s current Quick Ratio is 1.66, which is 18% above median its own 10-year median of 1.41. 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 €100.75, compared to a current price of €88.00 — trading 12.7% below its estimated fair value. The current Quick Ratio is 1.66, which is 18% above median its 10-year median of 1.41 and 2.4% below the Software industry median of 1.70. 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 Quick Ratio calculated?
Quick Ratio is calculated from a company's financial statements. For Formula Systems (1985) (FRA:FSY), the current Quick Ratio is 1.66 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 €88.00 is trading 12.7% below its estimated GF Value™ of €100.75.
GuruFocus considers Formula Systems (1985) to be Modestly Undervalued.
Key valuation signals for FRA:FSY:
Quick Ratio: 1.66 (18% above median its 10-year median of 1.41)
GF Value™: €100.75 vs. price of €88.00 (12.7% below fair value)
Industry Position: 2.4% below the Software median (#1468 of 2864)
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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