FORMULA SYSTEMS (1985) LTD financial statements

Income statement, balance sheet and cash flow statement for the last 10 fiscal years, taken from the XBRL data FORMULA SYSTEMS (1985) LTD files with the SEC in its annual reports.

In USD millions, except per-share amounts. Outflows in the cash flow statement are negative.

Income statement

	FY2015	FY2017	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024
Revenue	973	1,109	1,355	1,493	1,701	1,934	2,404	2,572	2,621	2,758
Cost of revenue	602	850	1,058	1,160	1,315	1,486	1,841	1,950	1,977	2,073
Gross profit	149	259	297	333	386	447	564	622	644	685
Research and development	7.49	22.3	39.9	41.2	46.7	52.6	65.9	72.1	78	84.4
Selling, general and administrative	94.7	148	184	182	201	224	290	318	326	335
Operating income	46.6	88.5	72.8	110	138	171	208
Interest expense	8.25	17.6	29.9	15.9	22.4	29.4	30	27.2	42.1	38.1
Interest income	5.42	6.01	8.75	7.56	3.79	2.56	5.99	7.29	13.8	15.9
Pre-tax income	38.3	77.3	52.8	101	120	144		257	211	248
Income tax	11	21.2	13.4	24.3	27.2	31.3	42.6	55.2	46.1	56.7
Net income to minority interests	18.5	33.7	29.1	45	94.4	114	87.3	118	102	114
Net income	73.7	22.4	10.4	77.4	94.4	114	142	81.4	64	79.7
EBITDA	63.8	121	116	158	225	266	330
EPS, basic	5.24	1.58	0.72	2.20	2.56	3.05	3.57	5.31	4.19	5.22
EPS, diluted	5.00	1.49	0.68	2.14	2.44	3.01	3.50	5.21	4.12	5.09
Shares, basic (weighted)	0.01
Shares, diluted (weighted)	0.01
Dividend per share		0.34

Balance sheet

	FY2015	FY2017	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024
Cash and equivalents	133	240	246	268	369	502	485	544	452	508
Short-term investments	11	37.5	14.1	9.91	6.6	1.24	1.14	0.74
Receivables	177						2.96	5.38	7.83	7.92
Inventory	4.61	3.95	3.3	3.88	8.64	24	21.2	35.2	42	30.7
Total current assets	357	634	695	781	966	1,161	1,302	1,371	1,376	1,487
Property, plant and equipment	14.2	26.1	29.8	29.2	43.1	59.2	56.9	55	52.9	51.8
Lease right-of-use assets					104	114	116	117	121	156
Goodwill	162	640	617	641	724	872	933	926	937	975
Intangible assets	4.92	128	164	150	165	222	242	223	207	217
Long-term investments	0
Total assets	1,067	1,355	1,564	1,665	2,089	2,520	2,749	2,794	2,813	3,015
Accounts payable	58.1								73.1	98
Accrued liabilities	51.4
Deferred revenue	25.3
Short-term debt									146	142
Total current liabilities	212	359	433	526	671	780	948	1,001	986	1,138
Long-term debt	58.3
Lease liabilities		0.11			81.3				84.6	120
Other non-current liabilities	0
Total liabilities	504	56.7	59.2	7.09	14	1,412	1,569	1,617	1,504	1,626
Total debt	58.5
Paid-in capital	131
Retained earnings	319	234	239	263	285	324	358	419	475	536
Treasury stock	-0.26
Other comprehensive income	-1.58
Shareholders' equity	452	336	359	368	422	503	541	552	626	679
Minority interests	90.7	387	414	438	475	605	639	625	682	710
Total equity	542	724	773	805	896	1,109	1,180	1,177	1,308	1,389
Total liabilities and equity	1,067	1,355	1,564	1,665	2,089	2,520	2,749	2,794	2,813	3,015
Shares outstanding	14.7

Cash flow statement

	FY2015	FY2017	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024
Net income	92.4	56.1	39.4	77.4	94.4	114	142	200	166	194
Depreciation and amortization	17.2	32.4	43.6	48.7	86.9	95.5	122	115	121	115
Stock-based compensation	5.07
Deferred income tax	0.74
Change in receivables	-12.6
Change in inventory	-2.37
Cash from operations	54.4	75	81.1	82.6	196	288	209	239	295	324
Capital expenditures	-5.43	-9.14	-9.57	-11.6	-22.4	-16.7	-17.4	-22.1	-16.7	-16.4
Acquisitions	-1.28
Cash from investing	-58.5	-80	-107	-90.5	-108	-177	-110	-74.3	-139	-78.2
Debt issued	32.2	20.7	-21.2	-20.7
Debt repaid	-26.9	-37.4	-46.1	-42.9	-75.5	-79.3	-84.2	-87.9	-82.9	-93.3
Cash from financing	35.8	-5.89	19	41	6.01	9.73	-114	-71	-243	-185
Exchange rate effect	-6.6	-0.08	12.9	-10.6	6.3	12.1	-1.03	-34.9	-4.95	-5.45
Net change in cash	25.2	-11	5.9	22.5	100	133	-16.3	59	-92.4	55.9
Free cash flow	49	65.8	71.5	71	174	271	192	217	278	308
Interest paid	6.04
Income taxes paid	17.1

Key metrics

Worked out from the statements above. Latest values use fiscal 2024. Valuation uses the share price of $114.99 on September 25, 2026.

Profitability

Metric	Value	How it is calculated
Gross margin	24.8%	Gross profit / revenue.
Pre-tax margin	9.0%	Pre-tax income / revenue.
Net margin	2.9%	Net income / revenue.
FCF margin	11.2%	Free cash flow (cash from operations - capital expenditures) / revenue.
Operating cash flow margin	11.8%	Cash from operations / revenue.
Effective tax rate	22.8%	Income tax / pre-tax income, when pre-tax income is positive.
Return on equity (ROE)	12.2%	Net income / average shareholders' equity (opening and closing). Not shown when equity is negative.
Return on assets (ROA)	2.7%	Net income / average total assets.
R&D / revenue	3.1%	Research and development expense / revenue.
SG&A / revenue	12.2%	Selling, general and administrative expense / revenue.
Capex / revenue	0.6%	Capital expenditures / revenue.
D&A / revenue	4.2%	Depreciation and amortization / revenue.

Growth

Metric	Value	How it is calculated
Revenue growth, 1y	5.2%	Revenue vs the same period a year earlier. Only from a positive base.
Revenue CAGR, 3y	4.7%	Compound annual growth of revenue over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Revenue CAGR, 5y	10.1%	Compound annual growth of revenue over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Gross profit growth, 1y	6.4%	Gross profit vs the same period a year earlier. Only from a positive base.
Gross profit CAGR, 3y	6.7%	Compound annual growth of gross profit over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Gross profit CAGR, 5y	12.1%	Compound annual growth of gross profit over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Net income growth, 1y	24.5%	Net income vs the same period a year earlier. Only from a positive base.
Net income CAGR, 3y	-17.5%	Compound annual growth of net income over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Net income CAGR, 5y	-3.3%	Compound annual growth of net income over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
EPS growth, 1y	23.5%	EPS vs the same period a year earlier. Only from a positive base.
EPS CAGR, 3y	13.3%	Compound annual growth of eps over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
EPS CAGR, 5y	15.8%	Compound annual growth of eps over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Operating cash flow growth, 1y	10.0%	Operating cash flow vs the same period a year earlier. Only from a positive base.
Operating cash flow CAGR, 3y	15.8%	Compound annual growth of operating cash flow over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Operating cash flow CAGR, 5y	10.6%	Compound annual growth of operating cash flow over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Free cash flow growth, 1y	10.7%	Free cash flow vs the same period a year earlier. Only from a positive base.
Free cash flow CAGR, 3y	17.1%	Compound annual growth of free cash flow over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Free cash flow CAGR, 5y	12.1%	Compound annual growth of free cash flow over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Book value growth, 1y	8.6%	Book value vs the same period a year earlier. Only from a positive base.
Book value CAGR, 3y	7.9%	Compound annual growth of book value over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Book value CAGR, 5y	10.0%	Compound annual growth of book value over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Total assets growth, 1y	7.2%	Total assets vs the same period a year earlier. Only from a positive base.
Total assets CAGR, 3y	3.1%	Compound annual growth of total assets over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Total assets CAGR, 5y	7.6%	Compound annual growth of total assets over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.

Balance sheet health

Metric	Value	How it is calculated
Current ratio	1.31x	Current assets / current liabilities.
Quick ratio	0.45x	(Cash + short-term investments + receivables) / current liabilities.
Cash ratio	0.45x	(Cash + short-term investments) / current liabilities.
Liabilities / assets	53.9%	Total liabilities / total assets.
Working capital	$348.6M	Current assets - current liabilities.
Goodwill and intangibles / assets	39.5%	(Goodwill + intangible assets) / total assets.
Tangible book value	-$512.8M	Shareholders' equity - goodwill - intangible assets.

Efficiency

Metric	Value	How it is calculated
Asset turnover	0.95x	Revenue / average total assets.
Fixed asset turnover	52.7x	Revenue / average property, plant and equipment.
Inventory turnover	57.0x	Cost of revenue / average inventory.
Days inventory	6 days	365 x average inventory / cost of revenue.
Receivables turnover	350x	Revenue / average receivables.
Days sales outstanding	1 days	365 x average receivables / revenue.
Days payables	15 days	365 x average accounts payable / cost of revenue.
Cash conversion cycle	-8 days	Days inventory + days sales outstanding - days payables.
FCF conversion	386.6%	Free cash flow / net income, when net income is positive.
Capex / operating cash flow	5.1%	Capital expenditures / cash from operations, when that is positive.

Per share

Metric	Value	How it is calculated
EPS, diluted	$5.09	Net income per diluted share, as reported (split-adjusted). Over the last twelve months: the four quarters summed, or net income / latest diluted shares when a quarter has no reported EPS.
EPS, basic	$5.22	Net income per basic share, as reported (split-adjusted).

Valuation

Metric	Value	How it is calculated
Market cap	$1.76B	Share price x shares outstanding.
Enterprise value	$1.25B	Market cap + total debt - cash - short-term investments.
P/E	22.1x	Market cap / net income. Only when net income is positive.
P/S	0.64x	Market cap / revenue.
P/B	2.59x	Market cap / shareholders' equity. Only when equity is positive.
P/FCF	5.72x	Market cap / free cash flow. Only when free cash flow is positive.
P/OCF	5.43x	Market cap / cash from operations, when positive.
EV/Sales	0.45x	Enterprise value / revenue.
EV/FCF	4.07x	Enterprise value / free cash flow, when both are positive.
FCF yield	17.5%	Free cash flow / market cap.
Earnings yield	4.5%	Net income / market cap (the inverse of P/E).
PEG	1.66x	P/E / EPS growth per year over 3 years (in percent). Only when both are positive.

What was FORMULA SYSTEMS (1985) LTD's revenue in fiscal 2024?

FORMULA SYSTEMS (1985) LTD reported revenue of $2.76B for fiscal 2024, 5.2% higher than the year before.

Was FORMULA SYSTEMS (1985) LTD profitable in fiscal 2024?

Yes. Net income was $79.7M, a net margin of 2.9%.

How much free cash flow did FORMULA SYSTEMS (1985) LTD generate in fiscal 2024?

Cash from operations of $324.5M minus capital expenditures of $16.4M left free cash flow of $308.0M.

Source: SEC EDGAR XBRL company facts. Where a company tags only year-to-date figures, quarters are worked out as differences. Where a line is not tagged it is left empty, never estimated.

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