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Dassault Systemes SE (XPAR:DSY) Financial Strength : 7 (As of Mar. 2025)


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What is Dassault Systemes SE Financial Strength?

Dassault Systemes SE has the Financial Strength Rank of 7.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

GuruFocus does not calculate Dassault Systemes SE's interest coverage with the available data. Dassault Systemes SE's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.39. As of today, Dassault Systemes SE's Altman Z-Score is 5.08.


Competitive Comparison of Dassault Systemes SE's Financial Strength

For the Software - Application subindustry, Dassault Systemes SE's Financial Strength, along with its competitors' market caps and Financial Strength 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.


Dassault Systemes SE's Financial Strength Distribution in the Software Industry

For the Software industry and Technology sector, Dassault Systemes SE's Financial Strength distribution charts can be found below:

* The bar in red indicates where Dassault Systemes SE's Financial Strength falls into.


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Dassault Systemes SE Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Dassault Systemes SE's Interest Expense for the months ended in Mar. 2025 was €0 Mil. Its Operating Income for the months ended in Mar. 2025 was €304 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was €2,043 Mil.

Dassault Systemes SE's Interest Coverage for the quarter that ended in Mar. 2025 is

GuruFocus does not calculate Dassault Systemes SE's interest coverage with the available data.

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Dassault Systemes SE's Debt to Revenue Ratio for the quarter that ended in Mar. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(411.4 + 2043.3) / 6291.6
=0.39

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Dassault Systemes SE has a Z-score of 5.08, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 5.08 is strong.

* 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.


Dassault Systemes SE  (XPAR:DSY) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Dassault Systemes SE has the Financial Strength Rank of 7.


Dassault Systemes SE Financial Strength Related Terms

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Dassault Systemes SE Business Description

Address
10, Rue Marcel Dassault, Velizy-Villacoublay, FRA, 78140
Dassault Systèmes is a leading provider of computer-assisted design and product lifecycle management software, serving customers like Boeing and Volkswagen throughout the production process. The company's flagship product, Catia, primarily serves the transportation, industrial equipment, and aerospace and defense industries. In life sciences, Dassault's Medidata cloud platform optimizes clinical trial efficiency and is the leader in electronic data capture.