Allegion key statistics and ratios

In fiscal 2025, Allegion had return on equity of 36.1%, an operating margin of 21.1%, debt equal to 96.3% of equity and a current ratio of 1.84. 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.

Allegion: financial ratios, annual
Fiscal year	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	LTMSept 2026
Gross margin	40.8%	41.6%	40.3%	42.0%	44.2%	44.6%	43.0%	43.9%	43.3%	42.0%	40.4%	43.3%	44.2%	45.2%	45.1%
Operating margin	18.4%	11.6%	15.4%	17.3%	19.4%	20.5%	19.2%	19.8%	14.8%	18.5%	17.9%	19.4%	20.7%	21.1%	21.5%
Net margin	10.9%	1.6%	8.3%	7.4%	10.2%	11.3%	15.9%	14.1%	11.6%	16.8%	14.0%	14.8%	15.8%	15.8%	15.7%
Free-cash-flow margin	12.3%	9.8%	9.6%	10.7%	15.0%	12.4%	15.0%	14.8%	16.3%	15.5%	12.1%	14.1%	15.5%	16.9%	16.9%
Return on equity	15.9%	4.9%	—	—	—	106.2%	82.6%	57.1%	39.6%	60.8%	53.9%	47.8%	42.4%	36.1%	32.6%
Return on assets	—	1.6%	8.7%	7.2%	10.2%	11.4%	16.3%	13.9%	10.4%	15.8%	13.0%	13.0%	13.6%	13.3%	12.9%
Asset turnover	—	1.03	1.05	0.97	0.99	1.01	1.02	0.99	0.90	0.94	0.93	0.88	0.86	0.84	0.82
Current ratio	—	1.93	1.88	1.64	1.93	2.24	1.79	1.98	2.20	1.86	1.73	1.26	2.04	1.84	1.90
Debt to equity	0.0%	—	—	>999%	>999%	376.6%	227.4%	190.1%	173.5%	191.1%	223.7%	153.6%	134.1%	96.3%	94.0%
Interest cover (operating income ÷ interest)	—	23.6x	6.1x	6.8x	6.8x	4.7x	9.7x	10.1x	7.9x	10.6x	7.7x	7.6x	7.7x	8.5x	9.6x
Effective tax rate	37.3%	78.3%	31.4%	26.1%	21.6%	30.1%	8.4%	15.4%	13.9%	7.8%	10.9%	12.4%	14.5%	16.2%	18.8%
R&D as % of revenue	1.9%	1.9%	2.0%	2.2%	2.1%	2.0%	2.0%	1.9%	2.0%	2.6%	2.3%	2.8%	3.0%	3.2%	—
SG&A as % of revenue	22.5%	23.3%	24.9%	24.7%	24.8%	24.1%	23.7%	23.9%	23.4%	23.5%	22.5%	23.7%	23.5%	24.1%	23.6%
Capital spending as % of revenue	1.0%	1.0%	2.4%	1.7%	1.9%	2.0%	1.8%	2.3%	1.7%	1.6%	2.0%	2.3%	2.4%	2.4%	2.4%
Free cash flow ÷ net income	113.4%	630.7%	116.7%	144.1%	146.2%	109.0%	94.0%	105.2%	141.0%	91.8%	86.4%	95.6%	97.6%	106.5%	107.1%
Dividends ÷ net income	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	37.3%	26.7%	31.4%	29.4%	27.9%	27.2%	26.6%
Dividends and buybacks ÷ free cash flow	0.0%	0.0%	24.6%	13.5%	25.4%	20.1%	16.5%	53.5%	73.6%	122.2%	51.8%	42.3%	66.4%	37.2%	62.8%

US$ thousands unless shown otherwise. Fiscal quarters.

Allegion: financial ratios, quarterly
Quarter	2024 Q4Dec 2024	2025 Q1Mar 2025	2025 Q2Jun 2025	2025 Q3Sept 2025	2025 Q4Dec 2025	2026 Q1Mar 2026	2026 Q2Jun 2026	2026 Q3Sept 2026
Gross margin	44.1%	44.9%	45.6%	45.8%	44.5%	44.0%	44.9%	46.8%
Operating margin	19.5%	20.9%	21.5%	21.8%	20.3%	18.9%	22.1%	24.3%
Net margin	15.2%	15.7%	15.6%	17.6%	14.3%	13.4%	16.0%	18.8%
Free-cash-flow margin	20.6%	8.9%	18.8%	19.6%	19.4%	7.8%	15.7%	23.8%
Current ratio	2.04	2.17	2.30	1.77	1.84	1.91	1.93	1.90
Debt to equity	133.2%	124.3%	115.7%	107.2%	95.8%	96.6%	95.9%	93.5%
SG&A as % of revenue	24.5%	24.0%	24.1%	23.9%	24.2%	25.1%	22.8%	22.5%

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

4 of 7 checks passed · September 30, 2026

What it owns · $5.5bn

Short-term assets $1.6bnLonger-term assets $3.9bn

What it owes, and who funded it · $5.5bn

Short-term liabilities $823mLonger-term liabilities $2.5bnShareholders' equity $2.2bn

Short-term assets cover short-term liabilities $1.6bn of assets due within a year against $823m of liabilities due within a year.
Short-term assets cover long-term liabilities $1.6bn short-term assets against $2.5bn of longer-dated liabilities.
More cash than debt $388m of cash against $2.0bn of debt.
Debt below 40% of shareholders' equity Debt is 94% of equity.
Debt burden no higher than five years ago Debt to equity moved from 192% to 94% over five years.
A year's operating cash flow covers at least 20% of debt $844m of operating cash flow against $2.0bn of debt.
Operating profit covers interest at least five times over Operating income of $944m against $98m of interest.

From Allegion'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

82 /100

Strong moat

How hard Allegion'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 17.3% of total assets over 10 years.
Pricing power 15 / 20

Gross margin has been a median 43.5%, moving by 1.3 percentage points (standard deviation) across 10 years.
Durability 16 / 20

Operating margin has been a median 19.7%; its worst year was 15.8%.
Cash conversion 18 / 20

Free cash flow was positive in 10 of 10 years, at a median 15.2% of revenue.
Discipline 19 / 20

The diluted share count fell 5.5% over five years; stock-based pay has been a median 0.8% 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 (87 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 Allegion's SEC filings (10-K and 10-Q), retrieved October 23, 2026. How we read and check them: methodology and data sources. Not investment advice. Back to Allegion.