Descartes Sys Group Inc Financials
Descartes Sys Group Inc (DSGX) reported $729.0M in revenue for fiscal year 2026, up 12.0% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 15 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
A high-gross-margin, low-capex model lets Descartes consistently turn growth into faster profit and even faster cash.
From FY2024 to FY2026, operating margin widened from24.9% to28.8% . R&D spending also rose from$84.1M to$105.3M , so the profit lift came from scale absorbing overhead inside a very high-gross-margin model, not from starving product investment, despite continued expense growth elsewhere.
Cash generation is stronger than accounting earnings: FY2026 operating cash flow of
The balance sheet is conservative on financing: cash of
Financial Health Signals
Scored against operating companies for FY2026. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Descartes Sys Group Inc's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Descartes Sys Group Inc has an operating margin of 28.8%, meaning the company retains $29 of operating profit per $100 of revenue. This strong profitability earns a score of 95/100, reflecting efficient cost management and pricing power. This is up from 27.8% the prior year.
Descartes Sys Group Inc's revenue grew 12.0% year-over-year to $729.0M, a solid pace of expansion. This earns a growth score of 71/100.
Descartes Sys Group Inc carries a low D/E ratio of 0.17, meaning only $0.17 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 76/100, indicating a strong balance sheet with room for future borrowing.
Descartes Sys Group Inc's current ratio of 2.16 indicates adequate short-term liquidity, earning a score of 62/100. The company can meet its near-term obligations, though with limited headroom.
Descartes Sys Group Inc converts 35.7% of revenue into free cash flow ($260.5M). This strong cash generation earns a score of 96/100.
Descartes Sys Group Inc earns a strong 10.1% return on equity (ROE), meaning it generates $10 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 81/100. This is down from 10.3% the prior year.
Descartes Sys Group Inc scores 15.83, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($6.7B) relative to total liabilities ($276.8M). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Descartes Sys Group Inc passes 5 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 3 of 4 profitability signals pass, 1 of 2 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Descartes Sys Group Inc generates $1.63 in operating cash flow ($266.2M OCF vs $163.8M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Descartes Sys Group Inc earns $217.14 in operating income for every $1 of interest expense ($210.0M vs $967K). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Earnings & Revenue
Descartes Sys Group Inc generated $729.0M in revenue in fiscal year 2026. This represents an increase of 12.0% from the prior year.
Descartes Sys Group Inc's EBITDA was $297.1M in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 16.0% from the prior year.
Descartes Sys Group Inc reported $163.8M in net income in fiscal year 2026. This represents an increase of 14.3% from the prior year.
Descartes Sys Group Inc earned $1.87 per diluted share (EPS) in fiscal year 2026. This represents an increase of 14.0% from the prior year.
Cash & Balance Sheet
Descartes Sys Group Inc generated $260.5M in free cash flow in fiscal year 2026, representing cash available after capex. This represents an increase of 22.6% from the prior year.
Descartes Sys Group Inc held $356.5M in cash as of fiscal year 2026; long-term debt is not reported for that period.
Not reported for fiscal year 2026.
Margins & Returns
Descartes Sys Group Inc's gross margin was 77.1% in fiscal year 2026, indicating the percentage of revenue retained after direct costs. This is up 1.4 percentage points from the prior year.
Descartes Sys Group Inc's operating margin was 28.8% in fiscal year 2026, reflecting core business profitability. This is up 1.0 percentage points from the prior year.
Descartes Sys Group Inc's net profit margin was 22.5% in fiscal year 2026, showing the share of revenue converted to profit. This is up 0.5 percentage points from the prior year.
Descartes Sys Group Inc's ROE was 10.1% in fiscal year 2026, measuring profit generated per dollar of shareholder equity. This is down 0.2 percentage points from the prior year.
Capital Allocation
Descartes Sys Group Inc invested $105.3M in research and development in fiscal year 2026. This represents an increase of 10.3% from the prior year.
Descartes Sys Group Inc spent $892K on share buybacks in fiscal year 2026, returning capital to shareholders by reducing shares outstanding.
Descartes Sys Group Inc invested $5.7M in capex in fiscal year 2026, funding long-term assets and infrastructure. This represents a decrease of 15.0% from the prior year.
DSGX Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY26 | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $729.0M+12.0% | $651.0M+13.6% | $572.9M+17.9% | $486.0M+14.4% | $424.7M+21.8% | $348.7M+7.0% | $325.8M+18.4% | $275.2M+15.9% | $237.4M+16.5% | $203.8M+10.2% | $185.0M+8.3% | $170.9M+12.9% | $151.3M+19.2% | $126.9M+11.3% | $114.0M |
| Cost of Revenue | $167.1M+5.4% | $158.6M+14.7% | $138.3M+22.0% | $113.3M+11.3% | $101.8M+13.2% | $89.9M+4.9% | $85.7M+14.3% | $75.0M+17.7% | $63.7M+13.7% | $56.1M+4.1% | $53.9M-1.9% | $54.9M+11.9% | $49.0M+15.7% | $42.4M+10.7% | $38.3M |
| Gross Profit | $561.9M+14.1% | $492.4M+13.3% | $434.6M+16.6% | $372.7M+15.4% | $322.9M+24.8% | $258.8M+7.8% | $240.1M+19.9% | $200.2M+15.2% | $173.7M+17.6% | $147.7M+12.7% | $131.1M+13.1% | $116.0M+13.4% | $102.3M+21.0% | $84.5M+11.6% | $75.7M |
| R&D Expenses | $105.3M+10.3% | $95.5M+13.5% | $84.1M+19.5% | $70.4M+12.4% | $62.6M+15.7% | $54.1M+1.0% | $53.5M+11.8% | $47.9M+14.5% | $41.8M+17.6% | $35.6M+13.6% | $31.3M+11.5% | $28.1M+8.5% | $25.9M+21.7% | $21.3M+11.7% | $19.0M |
| SG&A Expenses | $72.5M+11.0% | $65.2M+13.7% | $57.4M+15.4% | $49.7M+11.8% | $44.5M+22.6% | $36.3M+4.7% | $34.6M+15.4% | $30.0M+17.9% | $25.4M+10.3% | $23.1M+6.8% | $21.6M+6.3% | $20.3M-0.9% | $20.5M+30.7% | $15.7M+9.9% | $14.3M |
| Operating Income | $210.0M+15.9% | $181.1M+26.8% | $142.8M+9.5% | $130.4M+26.1% | $103.4M+44.9% | $71.4M+36.6% | $52.3M+26.1% | $41.4M+15.5% | $35.9M+16.9% | $30.7M+9.3% | $28.1M+24.5% | $22.6M+53.9% | $14.7M-14.7% | $17.2M+12.9% | $15.2M |
| Interest Expense | $967K-3.7% | $1.0M-26.3% | $1.4M+16.8% | $1.2M+3.9% | $1.1M-5.3% | $1.2M-73.1% | $4.4M+107.5% | $2.1M+64.1% | $1.3M+112.3% | $611K+17.0% | $522K-52.0% | $1.1M+9.6% | $993K+2106.7% | $45K+400.0% | $9K |
| Income Tax | $53.3M+10.3% | $48.4M+37.2% | $35.2M+11.9% | $31.5M+92.9% | $16.3M-10.6% | $18.3M+65.5% | $11.0M+34.1% | $8.2M+4.6% | $7.9M+2.7% | $7.7M+6.3% | $7.2M+6.6% | $6.8M+64.1% | $4.1M+236.4% | $1.2M-63.6% | $3.4M |
| Net Income | $163.8M+14.3% | $143.3M+23.6% | $115.9M+13.4% | $102.2M+18.5% | $86.3M+65.6% | $52.1M+40.8% | $37.0M+18.3% | $31.3M+16.4% | $26.9M+12.8% | $23.8M+15.9% | $20.6M+36.5% | $15.1M+56.7% | $9.6M-39.9% | $16.0M+33.0% | $12.0M |
| EPS (Diluted) | $1.87+14.0% | $1.64+22.4% | $1.34+13.6% | $1.18+18.0% | $1.00+63.9% | $0.61+35.6% | $0.45+12.5% | $0.40+14.3% | $0.35+12.9% | $0.31+14.8% | $0.27+28.6% | $0.21+40.0% | $0.15-40.0% | $0.25+31.6% | $0.19 |
DSGX Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY26 | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total Assets | $1.9B+15.1% | $1.6B+11.7% | $1.5B+12.0% | $1.3B+11.0% | $1.2B+11.5% | $1.1B+12.8% | $942.6M+44.3% | $653.3M+4.6% | $624.9M+24.8% | $500.5M+10.5% | $452.8M+1.9% | $444.2M+28.9% | $344.5M+24.8% | $276.1M+6.6% | $258.9M |
| Current Assets | $482.1M+36.7% | $352.6M-15.7% | $418.2M+16.6% | $358.7M+22.8% | $292.1M+43.8% | $203.1M+102.6% | $100.2M+38.7% | $72.2M-3.5% | $74.9M+3.2% | $72.6M-3.2% | $75.0M-52.3% | $157.3M+42.7% | $110.2M+35.9% | $81.1M-21.5% | $103.4M |
| Cash & Equivalents | $356.5M+51.0% | $236.1M-26.4% | $321.0M+16.1% | $276.4M+29.5% | $213.4M+59.7% | $133.7M+201.0% | $44.4M+62.7% | $27.3M-22.3% | $35.1M-7.8% | $38.1M+2.5% | $37.2M-68.5% | $118.1M+88.3% | $62.7M+66.6% | $37.6M-42.6% | $65.5M |
| Inventory | $101K-85.9% | $715K+102.5% | $353K-53.5% | $759K-12.6% | $868K+102.3% | $429K+4.4% | $411K+332.6% | $95K-22.8% | $123K-26.3% | $167K+7.7% | $155K-67.3% | $474K-64.9% | $1.4M+66.3% | $812K+96.6% | $413K |
| Accounts Receivable | $64.8M+20.1% | $54.0M+4.6% | $51.6M+14.2% | $45.2M+8.3% | $41.7M+12.1% | $37.2M+5.9% | $35.1M+11.5% | $31.5M+9.4% | $28.8M+13.3% | $25.4M-0.8% | $25.6M+13.3% | $22.6M+10.0% | $20.6M-0.4% | $20.6M+22.4% | $16.9M |
| Goodwill | $1.0B+10.9% | $924.8M+21.6% | $760.4M0.0% | $760.4M+24.9% | $608.8M+7.7% | $565.2M+7.9% | $523.7M+38.5% | $378.2M+8.0% | $350.1M+33.1% | $263.1M+21.0% | $217.5M+47.5% | $147.4M+32.6% | $111.2M+25.9% | $88.3M+675.1% | $11.4M |
| Total Liabilities | $276.8M+5.5% | $262.4M+11.1% | $236.3M+9.0% | $216.7M+16.7% | $185.6M+22.0% | $152.2M+25.9% | $120.9M+0.9% | $119.8M-4.9% | $126.1M+80.2% | $69.9M+37.8% | $50.8M-5.7% | $53.8M-42.9% | $94.3M+149.1% | $37.9M-6.2% | $40.4M |
| Current Liabilities | $223.2M+2.9% | $217.0M+6.6% | $203.6M+20.1% | $169.6M+27.1% | $133.4M+28.0% | $104.3M+17.2% | $88.9M+26.4% | $70.4M+4.0% | $67.7M+25.8% | $53.8M+34.4% | $40.0M-0.3% | $40.1M-9.4% | $44.3M+55.5% | $28.5M+11.2% | $25.6M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | $25.5M-31.2% | $37.0M | N/A | N/A | N/A | $31.8M | N/A | N/A |
| Total Equity | $1.6B+16.9% | $1.4B+11.9% | $1.2B+12.6% | $1.1B+10.0% | $999.8M+9.7% | $911.1M+10.9% | $821.7M+54.0% | $533.5M+7.0% | $498.8M+15.8% | $430.6M+7.1% | $402.0M+3.0% | $390.4M+56.1% | $250.2M+5.0% | $238.2M+8.4% | $219.8M |
| Retained Earnings | $527.0M+44.8% | $364.0M+64.9% | $220.8M+110.5% | $104.8M+3914.1% | $2.6M+103.1% | -$83.7M+38.4% | -$135.8M+21.4% | -$172.8M+18.4% | -$211.6M+11.3% | -$238.5M+9.1% | -$262.3M+7.3% | -$282.9M+5.1% | -$297.9M+3.1% | -$307.5M+4.9% | -$323.5M |
DSGX Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY26 | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $266.2M+21.4% | $219.3M+5.6% | $207.7M+7.9% | $192.4M+9.2% | $176.1M+34.2% | $131.2M+25.9% | $104.3M+33.5% | $78.1M+8.2% | $72.1M-0.6% | $72.6M+33.8% | $54.2M+9.6% | $49.5M+16.1% | $42.6M+40.5% | $30.3M+26.8% | $23.9M |
| Capital Expenditures | $5.7M-15.0% | $6.7M+21.2% | $5.6M-8.4% | $6.1M+25.7% | $4.8M+28.5% | $3.8M-23.3% | $4.9M-6.6% | $5.2M+3.1% | $5.1M+3.5% | $4.9M+14.0% | $4.3M+60.8% | $2.7M+12.3% | $2.4M-31.8% | $3.5M-26.2% | $4.7M |
| Free Cash Flow | $260.5M+22.6% | $212.5M+5.2% | $202.1M+8.5% | $186.3M+8.8% | $171.3M+34.4% | $127.5M+28.3% | $99.4M+36.4% | $72.8M+8.6% | $67.1M-0.9% | $67.7M+35.5% | $49.9M+6.7% | $46.8M+16.3% | $40.2M+49.9% | $26.8M+39.9% | $19.2M |
| Investing Cash Flow | -$157.3M+47.0% | -$296.9M-100.3% | -$148.3M-21.9% | -$121.6M-27.9% | -$95.1M-82.3% | -$52.2M+82.4% | -$297.0M-305.8% | -$73.2M+37.4% | -$117.0M-66.2% | -$70.4M+45.8% | -$129.8M-53.0% | -$84.8M-38.8% | -$61.1M-4.9% | -$58.2M-123.9% | -$26.0M |
| Financing Cash Flow | $5.0M+238.2% | -$3.6M+75.4% | -$14.7M-220.2% | -$4.6M-403.6% | $1.5M-72.7% | $5.6M-97.4% | $210.2M+1947.3% | -$11.4M-129.9% | $38.0M+18110.9% | -$211K+91.3% | -$2.4M-102.5% | $96.6M+119.0% | $44.1M+5013.1% | -$898K+65.0% | -$2.6M |
| Share Buybacks | $892K | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
Not reported in any period shown, so not listed: Dividends Paid.
DSGX Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples.
| Metric | FY26 | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 77.1%+1.4pp | 75.6%-0.2pp | 75.9%-0.8pp | 76.7%+0.7pp | 76.0%+1.8pp | 74.2%+0.5pp | 73.7%+0.9pp | 72.8%-0.4pp | 73.2%+0.7pp | 72.5%+1.6pp | 70.9%+3.0pp | 67.9%+0.3pp | 67.6%+1.0pp | 66.6%+0.2pp | 66.4% |
| Operating Margin | 28.8%+1.0pp | 27.8%+2.9pp | 24.9%-1.9pp | 26.8%+2.5pp | 24.4%+3.9pp | 20.5%+4.4pp | 16.0%+1.0pp | 15.1%-0.1pp | 15.1%+0.1pp | 15.1%-0.1pp | 15.2%+2.0pp | 13.2%+3.5pp | 9.7%-3.9pp | 13.6%+0.2pp | 13.4% |
| Net Margin | 22.5%+0.5pp | 22.0%+1.8pp | 20.2%-0.8pp | 21.0%+0.7pp | 20.3%+5.4pp | 14.9%+3.6pp | 11.4%0.0pp | 11.4%+0.1pp | 11.3%-0.4pp | 11.7%+0.6pp | 11.1%+2.3pp | 8.8%+2.5pp | 6.3%-6.3pp | 12.6%+2.1pp | 10.5% |
| Return on Equity | 10.1%-0.2pp | 10.3%+1.0pp | 9.4%+0.1pp | 9.3%+0.7pp | 8.6%+2.9pp | 5.7%+1.2pp | 4.5%-1.4pp | 5.9%+0.5pp | 5.4%-0.1pp | 5.5%+0.4pp | 5.1%+1.2pp | 3.9%0.0pp | 3.8%-2.9pp | 6.7%+1.2pp | 5.5% |
| Return on Assets | 8.6%-0.1pp | 8.7%+0.8pp | 7.9%+0.1pp | 7.8%+0.5pp | 7.3%+2.4pp | 4.9%+1.0pp | 3.9%-0.9pp | 4.8%+0.5pp | 4.3%-0.5pp | 4.8%+0.2pp | 4.5%+1.2pp | 3.4%+0.6pp | 2.8%-3.0pp | 5.8%+1.2pp | 4.6% |
| Current Ratio | 2.16+0.5x | 1.62-0.4x | 2.05-0.1x | 2.11-0.1x | 2.19+0.2x | 1.95+0.8x | 1.13+0.1x | 1.03-0.1x | 1.11-0.2x | 1.35-0.5x | 1.87-2.0x | 3.92+1.4x | 2.49-0.4x | 2.85-1.2x | 4.04 |
| Debt-to-Equity | 0.170.0x | 0.190.0x | 0.190.0x | 0.200.0x | 0.190.0x | 0.170.0x | 0.15+0.1x | 0.050.0x | 0.07-0.1x | 0.160.0x | 0.130.0x | 0.140.0x | 0.130.0x | 0.160.0x | 0.18 |
| FCF Margin | 35.7%+3.1pp | 32.6%-2.6pp | 35.3%-3.1pp | 38.3%-2.0pp | 40.3%+3.8pp | 36.6%+6.1pp | 30.5%+4.0pp | 26.5%-1.8pp | 28.2%-5.0pp | 33.2%+6.2pp | 27.0%-0.4pp | 27.4%+0.8pp | 26.6%+5.4pp | 21.2%+4.3pp | 16.8% |
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Where Descartes Sys Group Inc Ranks
Frequently Asked Questions
What is Descartes Sys Group Inc's annual revenue?
Descartes Sys Group Inc (DSGX) reported $729.0M in total revenue for fiscal year 2026. This represents a 12.0% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Descartes Sys Group Inc's revenue growing?
Descartes Sys Group Inc (DSGX) revenue grew by 12.0% year-over-year, from $651.0M to $729.0M in fiscal year 2026.
Is Descartes Sys Group Inc profitable?
Yes, Descartes Sys Group Inc (DSGX) reported a net income of $163.8M in fiscal year 2026, with a net profit margin of 22.5%.
What is Descartes Sys Group Inc's EBITDA?
Descartes Sys Group Inc (DSGX) had EBITDA of $297.1M in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization.
What is Descartes Sys Group Inc's gross margin?
Descartes Sys Group Inc (DSGX) had a gross margin of 77.1% in fiscal year 2026, indicating the percentage of revenue retained after direct costs of goods sold.
What is Descartes Sys Group Inc's operating margin?
Descartes Sys Group Inc (DSGX) had an operating margin of 28.8% in fiscal year 2026, reflecting the profitability of core business operations before interest and taxes.
What is Descartes Sys Group Inc's net profit margin?
Descartes Sys Group Inc (DSGX) had a net profit margin of 22.5% in fiscal year 2026, representing the share of revenue converted into profit after all expenses.
What is Descartes Sys Group Inc's return on equity (ROE)?
Descartes Sys Group Inc (DSGX) has a return on equity of 10.1% for fiscal year 2026, measuring how efficiently the company generates profit from shareholder equity.
What is Descartes Sys Group Inc's free cash flow?
Descartes Sys Group Inc (DSGX) generated $260.5M in free cash flow during fiscal year 2026. This represents a 22.6% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Descartes Sys Group Inc's operating cash flow?
Descartes Sys Group Inc (DSGX) generated $266.2M in operating cash flow during fiscal year 2026, representing cash generated from core business activities.
What are Descartes Sys Group Inc's total assets?
Descartes Sys Group Inc (DSGX) had $1.9B in total assets as of fiscal year 2026, including both current and long-term assets.
What are Descartes Sys Group Inc's capital expenditures?
Descartes Sys Group Inc (DSGX) invested $5.7M in capital expenditures during fiscal year 2026, funding long-term assets and infrastructure.
How much does Descartes Sys Group Inc spend on research and development?
Descartes Sys Group Inc (DSGX) invested $105.3M in research and development during fiscal year 2026.
What is Descartes Sys Group Inc's current ratio?
Descartes Sys Group Inc (DSGX) had a current ratio of 2.16 as of fiscal year 2026, which is generally considered healthy.
What is Descartes Sys Group Inc's debt-to-equity ratio?
Descartes Sys Group Inc (DSGX) had a debt-to-equity ratio of 0.17 as of fiscal year 2026, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Descartes Sys Group Inc's return on assets (ROA)?
Descartes Sys Group Inc (DSGX) had a return on assets of 8.6% for fiscal year 2026, measuring how efficiently the company uses its assets to generate profit.
What is Descartes Sys Group Inc's Altman Z-Score?
Descartes Sys Group Inc (DSGX) has an Altman Z-Score of 15.83, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Descartes Sys Group Inc's Piotroski F-Score?
Descartes Sys Group Inc (DSGX) has a Piotroski F-Score of 5 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Descartes Sys Group Inc's earnings high quality?
Descartes Sys Group Inc (DSGX) has an earnings quality ratio of 1.63x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Descartes Sys Group Inc cover its interest payments?
Descartes Sys Group Inc (DSGX) has an interest coverage ratio of 217.14x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Descartes Sys Group Inc?
Descartes Sys Group Inc (DSGX) scores 80 out of 100 on our Financial Health Score, indicating strong standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.