Open Text Corporation designs and sells information management software and solutions. Its strengths include a high gross margin of 73.7% and a solid ROE of 16.0%, indicating effective profitability. However, concerns arise from a current ratio of 0.81, suggesting potential liquidity issues, and a relatively high debt-to-equity ratio of 1.49, which may increase financial risk. While the company maintains strong margins, the overall financial health score of 56/100 indicates room for improvement in managing liabilities and liquidity.
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Debt of $6.0B is 6.2x the company's cash position of $956.0M.
Operating margin expanded by 3.4pp, demonstrating strong operational leverage.
Both gross margin (+1.5pp) and operating margin (+3.4pp) are expanding simultaneously, indicating the company is scaling profitably.
Exceptional gross margin of 73.7% indicates strong pricing power and competitive moat.
Operating cash flow of $1006.8M exceeds net income by 57%, indicating high-quality earnings with strong cash conversion.
Operating cash flow grew 21.2% YoY, demonstrating improving cash conversion.
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Based on 2026-FY (June 30, 2026)