Check Point Software Technologies LTD key statistics and ratios

In fiscal 2025, Check Point Software Technologies LTD had return on equity of 37.3%, an operating margin of 30.5%, debt equal to 68.4% of equity and a current ratio of 2.05. Each ratio below is calculated from the figures on its income statement, balance sheet and cash flow pages.

Financial ratios

US$ thousands unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

Check Point Software Technologies LTD: financial ratios, annual
Fiscal year	2009Dec 2009	2010Dec 2010	2011Dec 2011	2012Dec 2012	2013Dec 2013	2014Dec 2014	2015Dec 2015	2016Dec 2016	2017Dec 2017	2018Dec 2018	2019Dec 2019	2020Dec 2020	2021Dec 2021	2022Dec 2022	2023Dec 2023	2024Dec 2024	2025Dec 2025
Gross margin	85.6%	85.1%	85.9%	88.1%	88.3%	88.2%	88.4%	88.4%	88.5%	89.5%	89.2%	89.0%	88.1%	86.9%	88.3%	87.6%	86.7%
Operating margin	44.9%	48.7%	51.5%	55.6%	54.6%	53.6%	51.5%	48.9%	49.8%	47.7%	44.2%	43.8%	41.9%	38.0%	37.2%	34.2%	30.5%
Net margin	38.7%	41.2%	43.6%	46.2%	46.8%	44.1%	42.1%	41.6%	43.3%	42.9%	41.4%	41.0%	37.6%	34.2%	34.8%	33.0%	38.8%
Free-cash-flow margin	59.8%	62.3%	59.0%	62.7%	57.5%	51.7%	57.2%	53.1%	58.3%	58.8%	54.1%	55.3%	54.8%	46.2%	42.2%	40.1%	43.0%
Return on equity	15.4%	18.0%	18.8%	19.3%	18.8%	18.2%	19.1%	20.6%	22.6%	22.3%	22.5%	24.1%	24.3%	25.8%	29.2%	30.1%	37.3%
Return on assets	11.6%	13.6%	14.1%	14.3%	13.8%	13.4%	13.7%	14.1%	15.0%	14.5%	14.2%	14.6%	13.9%	13.7%	14.7%	14.8%	15.6%
Asset turnover	0.30	0.33	0.32	0.31	0.30	0.30	0.33	0.34	0.35	0.34	0.34	0.36	0.37	0.40	0.42	0.45	0.40
Current ratio	2.17	2.14	2.32	2.23	1.63	1.84	1.64	1.62	1.63	1.74	1.53	1.48	1.37	1.27	1.18	1.13	2.05
Debt to equity	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	68.4%
Effective tax rate	19.8%	19.8%	20.4%	21.2%	18.0%	20.5%	21.5%	19.2%	17.3%	16.1%	14.2%	12.8%	14.1%	14.2%	13.9%	13.0%	−11.8%
R&D as % of revenue	9.7%	9.6%	8.8%	8.3%	8.7%	8.9%	9.2%	10.2%	10.4%	11.0%	12.0%	12.2%	13.5%	15.0%	15.3%	15.4%	16.8%
Capital spending as % of revenue	0.5%	0.4%	0.6%	0.6%	0.7%	0.9%	1.1%	1.4%	1.6%	0.9%	1.3%	0.9%	0.7%	0.9%	0.8%	0.9%	1.0%
Free cash flow ÷ net income	154.6%	151.0%	135.3%	135.7%	122.8%	117.2%	135.9%	127.6%	134.6%	137.1%	130.6%	134.9%	145.7%	135.1%	121.3%	121.6%	111.0%
Dividends and buybacks ÷ free cash flow	36.6%	29.3%	40.8%	55.4%	66.6%	99.4%	105.7%	106.8%	92.1%	98.0%	118.5%	113.7%	109.4%	120.8%	126.3%	126.4%	119.4%

Returns use average equity or assets over the year. Return on equity is left blank when equity is negative or so small that the ratio says nothing (above ±200%); interest cover is left blank above 200 times. Price-based ratios such as P/E are on the valuation page.

Financial health

3 of 5 checks passed · December 31, 2025

What it owns · $7.8bn

Short-term assets $4.0bnLonger-term assets $3.8bn

What it owes, and who funded it · $7.8bn

Short-term liabilities $1.9bnLonger-term liabilities $3.0bnShareholders' equity $2.9bn

Short-term assets cover short-term liabilities $4.0bn of assets due within a year against $1.9bn of liabilities due within a year.
Short-term assets cover long-term liabilities $4.0bn short-term assets against $3.0bn of longer-dated liabilities.
More cash than debt $1.8bn of cash against $2.0bn of debt.
Debt below 40% of shareholders' equity Debt is 68% of equity.
Debt burden no higher than five years ago Five-year comparison not available. Not assessable.
A year's operating cash flow covers at least 20% of debt $1.2bn of operating cash flow against $2.0bn of debt.
Operating profit covers interest at least five times over Interest not separately reported. Not assessable.

From Check Point Software Technologies LTD's latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Moat

95 /100

Strong moat

How hard Check Point Software Technologies's competitive advantage looks for rivals to wear away, judged from 5 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.

Returns on capital 20 / 20

Net income has been a median 13.5% of total assets over 5 years.
Pricing power 20 / 20

Gross margin has been a median 88.1%, moving by 1.1 percentage points (standard deviation) across 5 years.
Durability 20 / 20

Operating margin has been a median 44.9%; its worst year was 30.5%.
Cash conversion 20 / 20

Free cash flow was positive in 5 of 5 years, at a median 57.5% of revenue.

AI disruption exposure: Medium. In this industry, AI could change how the product is made or sold, without replacing the core asset. The score above includes a 5-point deduction for that exposure (100 before it).

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

Compare with peers

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Figures from Check Point Software Technologies LTD's SEC filings (10-K and 10-Q). How we read and check them: methodology and data sources. Not investment advice. Back to Check Point Software Technologies LTD.