Industry Profiles

Software Technology Bad Debt & DSO Benchmarks

Image Group
NetDragon Websoft photo
The Star Trek inspired NetDragon Websoft corporate office in Fuzhou, China. NetDragon is traded on the Hong Kong Stock Exchange.

Two key credit risk benchmarks improved slightly but profitability and operating cash flow dropped sharply as industry market capitalizations reach record highs. 

In the past three years, the software technology industry has seen an influx of new publicly-traded companies with extraordinarily high market capitalizations.  But the majority of these companies, many of them cloud-based, have yet to realize a profit.  In fact, for 2014, the 125-company software technology industry group of the Credit Standards Index (CSI) had an average net loss of 4.1%, the first time in negative territory since CreditPulse began the index in 2006.

The full article is available only to subscribers. Please login or subscribe to view.