>
Switch to:

The Descartes Systems Group Financial Strength

: 8 (As of Oct. 2021)
View and export this data going back to 1999. Start your Free Trial

The Descartes Systems Group has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

The Descartes Systems Group Inc shows strong financial strength.

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

The Descartes Systems Group's Interest Coverage for the quarter that ended in Oct. 2021 was 97.83. The Descartes Systems Group's debt to revenue ratio for the quarter that ended in Oct. 2021 was 0.03. As of today, The Descartes Systems Group's Altman Z-Score is 20.38.


Competitive Comparison

For the Software - Application subindustry, The Descartes Systems Group'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.

   

The Descartes Systems Group Financial Strength Distribution

For the Software industry and Technology sector, The Descartes Systems Group's Financial Strength distribution charts can be found below:

* The bar in red indicates where The Descartes Systems Group's Financial Strength falls into.



The Descartes Systems Group 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:

The Descartes Systems Group's Interest Expense for the months ended in Oct. 2021 was $-0.3 Mil. Its Operating Income for the months ended in Oct. 2021 was $28.6 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Oct. 2021 was $7.3 Mil.

The Descartes Systems Group's Interest Coverage for the quarter that ended in Oct. 2021 is

Interest Coverage=-1*Operating Income (Q: Oct. 2021 )/Interest Expense (Q: Oct. 2021 )
=-1*28.566/-0.292
=97.83

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

Good Sign:

Ben Graham prefers companies interest coverage is at least 5. The Descartes Systems Group Inc has enough cash to cover all of its debt. Its financial situation is stable.

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

The Descartes Systems Group's Debt to Revenue Ratio for the quarter that ended in Oct. 2021 is

Debt to Revenue Ratio=Total Debt (Q: Oct. 2021 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(4.051 + 7.336) / 435.644
=0.03

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.

The Descartes Systems Group has a Z-score of 20.38, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 20.38 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.


The Descartes Systems Group  (NAS:DSGX) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

The Descartes Systems Group has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


The Descartes Systems Group Financial Strength Related Terms

Thank you for viewing the detailed overview of The Descartes Systems Group's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


The Descartes Systems Group Business Description

The Descartes Systems Group logo
Industry
Technology » Software NAICS : 541511 SIC : 7721
Traded in Other Exchanges
Address
120 Randall Drive, Waterloo, ON, CAN, N2V 1C6
The Descartes Systems Group provides a software solution that allows users in the shipping industry to communicate with one another. The core product is the Global Logistics Network, which is best understood as transaction driven. Descartes charges clients to send/receive messages, data, and documents on the GLN (the transactions). Customers typically contract for a monthly minimum over a multiyear period. The GLN platform allows for Descartes to upsell additional software modules as well, typically provided via a software-as-a-service model.

The Descartes Systems Group Headlines

Other Sources

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)