Argan Inc key statistics and ratios

In fiscal 2026, Argan Inc had return on equity of 33.8%, an operating margin of 14.3% and a current ratio of 1.59. 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.

Argan Inc: financial ratios, annual
Fiscal year	2017Jan 2017	2018Jan 2018	2019Jan 2019	2020Jan 2020	2021Jan 2021	2022Jan 2022	2023Jan 2023	2024Jan 2024	2025Jan 2025	2026Jan 2026	LTMJul 2026
Gross margin	21.7%	16.7%	17.1%	−2.9%	15.8%	19.6%	19.0%	14.1%	16.1%	20.5%	20.9%
Operating margin	16.6%	12.0%	8.3%	−23.4%	5.9%	8.7%	9.2%	6.4%	10.1%	14.3%	15.4%
Net margin	10.4%	8.1%	10.8%	−17.9%	6.1%	7.5%	7.3%	5.6%	9.8%	14.6%	15.1%
Free-cash-flow margin	38.0%	−8.7%	−25.1%	19.5%	44.4%	5.3%	−7.3%	19.9%	18.4%	43.5%	45.9%
Return on equity	24.1%	22.2%	13.8%	−11.6%	7.2%	11.8%	10.9%	11.3%	26.6%	33.8%	37.0%
Return on assets	10.9%	12.1%	10.2%	−8.9%	4.4%	6.6%	6.3%	5.9%	11.9%	13.6%	13.9%
Asset turnover	1.05	1.50	0.95	0.50	0.72	0.88	0.87	1.05	1.22	0.93	0.92
Current ratio	1.68	2.65	5.12	2.93	1.98	2.27	2.17	1.81	1.63	1.59	1.50
Debt to equity	—	—	—	—	—	—	—	—	—	—	0.0%
Effective tax rate	32.4%	35.8%	−9.9%	—	4.3%	24.1%	24.6%	33.9%	23.2%	14.2%	16.9%
SG&A as % of revenue	4.8%	4.7%	8.4%	18.5%	10.0%	9.3%	9.8%	7.7%	6.0%	6.2%	5.5%
Capital spending as % of revenue	0.4%	0.5%	1.8%	3.0%	0.4%	0.3%	0.7%	0.5%	0.8%	0.4%	0.8%
Free cash flow ÷ net income	364.3%	−107.8%	−232.4%	—	730.9%	70.6%	−101.0%	352.6%	188.4%	298.2%	304.3%
Dividends ÷ net income	21.7%	21.6%	29.9%	—	197.3%	41.0%	42.2%	45.4%	21.4%	17.6%	15.6%
Dividends and buybacks ÷ free cash flow	6.0%	—	—	33.6%	27.0%	133.5%	—	23.8%	12.3%	8.3%	7.4%

US$ thousands unless shown otherwise. Fiscal quarters.

Argan Inc: financial ratios, quarterly
Quarter	2025 Q3Oct 2024	2025 Q4Jan 2025	2026 Q1Apr 2025	2026 Q2Jul 2025	2026 Q3Oct 2025	2026 Q4Jan 2026	2027 Q1Apr 2026	2027 Q2Jul 2026
Gross margin	17.2%	20.5%	19.0%	18.6%	18.7%	25.0%	21.0%	19.3%
Operating margin	11.8%	14.1%	12.6%	12.6%	13.0%	18.2%	15.6%	14.8%
Net margin	10.9%	13.5%	11.6%	14.8%	12.2%	18.8%	15.8%	13.9%
Free-cash-flow margin	11.4%	18.6%	18.0%	13.8%	68.4%	65.3%	38.1%	23.9%
Current ratio	1.64	1.63	1.75	1.71	1.61	1.59	1.53	1.50
SG&A as % of revenue	5.4%	6.4%	6.5%	6.0%	5.7%	6.8%	5.4%	4.5%

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

2 of 2 checks passed · July 31, 2026

What it owns · $1.4bn

Short-term assets $1.3bnLonger-term assets $83m

What it owes, and who funded it · $1.4bn

Short-term liabilities $878mLonger-term liabilities $16mShareholders' equity $507m

Short-term assets cover short-term liabilities $1.3bn of assets due within a year against $878m of liabilities due within a year.
Short-term assets cover long-term liabilities $1.3bn short-term assets against $16m of longer-dated liabilities.
More cash than debt Cash or debt not separately reported. Not assessable.
Debt below 40% of shareholders' equity Equity or debt not reported. Not assessable.
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 Cash flow or debt not reported. Not assessable.
Operating profit covers interest at least five times over Interest not separately reported. Not assessable.

From Argan Inc'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

61 /100

Moderate moat

How hard Argan's competitive advantage looks for rivals to wear away, judged from 10 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.

Returns on capital 20 / 20

Cash operating profit has been a median 17.7% of total assets over 10 years.
Pricing power 5 / 20

Gross margin has been a median 16.7%, moving by 4.6 percentage points (standard deviation) across 9 years.
Durability 1 / 20

Operating margin has been a median 7.7%; its worst year was -8.1%.
Cash conversion 14 / 20

Free cash flow was positive in 6 of 9 years, at a median 15.2% of revenue.
Discipline 20 / 20

The diluted share count fell 11.1% over five years; stock-based pay has been a median 0.6% of revenue.

AI disruption exposure: Low. In this industry, the business rests on physical assets, regulated networks or products AI itself depends on.

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

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Figures from Argan Inc's SEC filings (10-K and 10-Q), retrieved October 31, 2026. How we read and check them: methodology and data sources. Not investment advice. Back to Argan Inc.