Formula Systems (1985) Ltd. (FORTY) - Quick Ratio

The quick ratio of Formula Systems (FORTY) demonstrates the financial stability of this respected IT holding with Israeli roots, where the indicator reaches 1.39. Growth is driven by the scaling of SaaS products through cross-selling across client bases. Meanwhile, investment management is centralized while operational tasks are delegated to subsidiaries, eliminating dependence on external vendors.

This ratio measures a business's ability to immediately settle short-term liabilities using only cash and accounts receivable, excluding slow-moving inventories. By analyzing the quick ratio, an investor assesses the financial stability of Formula Systems (FORTY), whose B2B contract model in system software and cybersecurity minimizes inventory risks, ensuring a high speed of asset conversion into cash.