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FORTY · Nasdaq · United States · Services-Computer Programming Services
In shortFORMULA SYSTEMS (1985) LTD is profitable, generates cash and holds more cash than debt, with revenue growing (+5.2% last year).
Financial health
Solid
Built from five areas over the last five annual reports. Tap an area to see the figures behind it.
| Operating marginShare of each sale left after running the business, before interest and tax. | – | n/a |
|---|---|---|
| Net marginShare of each sale left as profit after every cost, interest and tax. | 2.9% | 32/100 |
| Return on equityProfit earned on the money shareholders put in. Above 15% is strong. | 12.2% | 61/100 |
| Return on invested capitalProfit earned on all the capital used (equity and debt). Above 10% usually means a real competitive edge. | – | n/a |
Weight in the score: 25%
| Current ratioShort-term assets divided by short-term debts. Below 1 can mean tight cash. | 1.31× | 42/100 |
|---|---|---|
| Debt / equityDebt compared with the shareholders' stake. Above 2 is heavily indebted. | 0.38× | 90/100 |
| Net debt / EBITDAYears of operating profit needed to repay net debt. Below 2 is comfortable. | Net cash | 100/100 |
| Interest coverageHow many times operating profit covers interest. Below 2 is risky. | – | n/a |
| Altman Z''Bankruptcy-risk model. Above 2.6 safe, below 1.1 distress. | – | n/a |
Weight in the score: 25%
| Free cash flow marginCash left from each sale after investments. The money that can pay dividends or reduce debt. | 11.2% | 65/100 |
|---|---|---|
| Free cash flow / net incomeHow much accounting profit turns into real cash. Near 1 or above is healthy. | 3.87× | 100/100 |
| Years with positive free cash flow (last 5) | 5 of 5 | 100/100 |
Weight in the score: 20%
| Profitable years (last 5) | 5 of 5 | 100/100 |
|---|---|---|
| Years of revenue decline (last 5) | 0 of 5 | 100/100 |
| Revenue growth volatility | 8.9% | 78/100 |
| Operating margin volatility | 0.1% | 100/100 |
Weight in the score: 20%
| Revenue growth, 3-year average | 4.7% | 43/100 |
|---|---|---|
| EPS growth, 3-year average | 13.3% | 91/100 |
Weight in the score: 10%
Fiscal year 2024 · change vs prior year
Annual figures as reported. Hover a bar or point for the exact value.
5 older years available with the 10-year history. Essential plan, from €8.25/month →
The last 5 fiscal years from the company's annual reports.
USD millions; negative values in parentheses.
| Fiscal year | FY20 | FY21 | FY22 | FY23 | FY24 |
|---|---|---|---|---|---|
| Revenue | 1,934 | 2,404 | 2,572 | 2,621 | 2,758 |
| Cost of revenue | 1,486 | 1,841 | 1,950 | 1,977 | 2,073 |
| Gross profit | 447 | 564 | 622 | 644 | 685 |
| Research & development | 53 | 66 | 72 | 78 | 84 |
| Selling, general & admin | 224 | 290 | 318 | 326 | 335 |
| Operating income | 171 | 208 | – | – | – |
| Interest expense | 29 | 30 | 27 | 42 | 38 |
| Pre-tax income | 144 | – | 257 | 211 | 248 |
| Income tax | 31 | 43 | 55 | 46 | 57 |
| Net income | 114 | 142 | 81 | 64 | 80 |
| Diluted EPS | $3.01 | $3.50 | $5.21 | $4.12 | $5.09 |
| Diluted shares (millions) | – | – | 0 | 0 | 0 |
5 older years available with the 10-year history. Essential plan, from €8.25/month →
The last 2 reported quarters (10-Q and 10-K filings), in USD millions. The fourth quarter is derived from the annual report.
The last 2 quarters of FORMULA SYSTEMS (1985) LTD are included in the Investor plan. Try free for 7 days →
Not computed: a required balance-sheet item is missing.
6/9
Nine yes-or-no tests on profitability, debt, liquidity and efficiency versus the prior year. 7 to 9 is strong, 0 to 3 is weak.
All figures: SEC EDGAR. Ratios and scores are computed by Scorvest (see how it works). Information only, not investment advice. How it works
Latest annual report: Dec 31, 2025 · Data updated May 15, 2025