The Receivables Turnover ratio measures the number of times a company collects its average accounts receivable balance. It is calculated as Revenue divided by average Accounts Receivable. An efficient company has a higher accounts receivable turnover ratio while an inefficient company has a lower ratio. Formula Systems (1985)'s Revenue for the
three
months ended in Mar. 2026 was €639 Mil. Formula Systems (1985)'s average Accounts Receivable for the
three
months ended in Mar. 2026 was €696 Mil.
Hence, Formula Systems (1985)'s Receivables Turnover for the
three
months ended in Mar. 2026 was 0.92.
Formula Systems (1985) (FRA:FSY) Receivables Turnover Explanation
An efficient company has a higher accounts receivable turnover ratio while an inefficient company has a lower ratio. This metric is commonly used to compare companies within the same industry to check whether they are on par with their competitors.
Formula Systems (1985) Receivables Turnover Related Terms
Formula Systems (1985) Receivables Turnover Historical Data
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The historical data trend for Formula Systems (1985)'s Receivables Turnover 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.
FRA:FSY vs IBM, ACN, FISV: Receivables Turnover Comparison
For the Information Technology Services subindustry, Formula Systems (1985)'s Receivables Turnover, along with its competitors' market caps and Receivables Turnover 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) Receivables Turnover vs Software Industry
For the Software industry and Technology sector, Formula Systems (1985)'s Receivables Turnover distribution charts can be found below:
* The bar in red indicates where Formula Systems (1985)'s Receivables Turnover 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.
Formula Systems (1985) (FRA:FSY) has a Receivables Turnover of 0.92 as of Mar. 2026. The accounts receivables turnover ratio measures the number of times a company collects its average accounts receivable balance. It is calculated as Revenue divided by Average Accounts Receivable. View historical data on Formula Systems (1985) and its competitors. According to the industry distribution chart, Formula Systems (1985) ranks #2065 out of 2767 companies in the Software industry, placing it in the top 74.6%.
Is Formula Systems (1985)'s Receivables Turnover too high?
Formula Systems (1985)'s current Receivables Turnover is 0.92. The Software industry median Receivables Turnover is 5.69. Formula Systems (1985)'s value of 0.92 is 83.8% below this industry median. Based on the distribution chart, Formula Systems (1985) ranks #2065 out of 2767 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 Receivables Turnover compare to IBM and ACN?
According to the Software industry distribution chart, Formula Systems (1985) ranks #2065 out of 2767 companies for Receivables Turnover. This places Formula Systems (1985) in the lower half of its industry. The industry median Receivables Turnover is 5.69. Formula Systems (1985)'s value of 0.92 is 83.8% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Receivables Turnover for a Software company?
The median Receivables Turnover among Software companies is 5.69, based on 2,767 companies in the industry. Companies in the top quartile (top 25%) have a Receivables Turnover significantly above this median, while those in the bottom quartile fall well below. However, Receivables Turnover should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Formula Systems (1985)'s current Receivables Turnover of 0.92 is 83.8% 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 Receivables Turnover mean?
A high Receivables Turnover can signal that a stock is expensive relative to its fundamentals. The accounts receivables turnover ratio measures the number of times a company collects its average accounts receivable balance. It is calculated as Revenue divided by Average Accounts Receivable. View historical data on Formula Systems (1985) and its competitors. For the Software industry, the median Receivables Turnover is 5.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formula Systems (1985)'s current Receivables Turnover is 0.92. 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 €89.00 — trading 11.7% below its estimated fair value. The current Receivables Turnover is 0.92 and 83.8% below the Software industry median of 5.69. 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 Receivables Turnover calculated?
Receivables Turnover is calculated from a company's financial statements. For Formula Systems (1985) (FRA:FSY), the current Receivables Turnover is 0.92 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 €89.00 is trading 11.7% below its estimated GF Value™ of €100.75.
GuruFocus considers Formula Systems (1985) to be Modestly Undervalued.
Key valuation signals for FRA:FSY:
Receivables Turnover: 0.92
GF Value™: €100.75 vs. price of €89.00 (11.7% below fair value)
Industry Position: 83.8% below the Software median (#2065 of 2767)
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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Receivables Turnover is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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