Descartes Systems Group Inc key statistics and ratios

In fiscal 2026, Descartes Systems Group Inc had return on equity of 10.9%, an operating margin of 28.8%, debt equal to 0.0% of equity and a current ratio of 2.16. 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.

Descartes Systems Group Inc: financial ratios, annual
Fiscal year	2010Jan 2010	2011Jan 2011	2012Jan 2012	2013Jan 2013	2014Jan 2014	2015Jan 2015	2016Jan 2016	2017Jan 2017	2018Jan 2018	2019Jan 2019	2020Jan 2020	2021Jan 2021	2022Jan 2022	2024Jan 2024	2025Jan 2025	2026Jan 2026
Gross margin	68.8%	65.8%	66.4%	66.6%	67.6%	67.9%	70.9%	72.5%	73.2%	72.7%	73.7%	74.2%	76.0%	75.9%	75.6%	77.1%
Operating margin	8.7%	7.8%	13.4%	13.6%	9.7%	13.2%	15.2%	15.1%	15.1%	15.1%	16.0%	20.5%	24.4%	24.9%	27.8%	28.8%
Net margin	19.5%	11.6%	10.6%	12.6%	6.4%	8.8%	11.1%	11.7%	11.3%	11.4%	11.4%	14.9%	20.3%	20.2%	22.0%	22.5%
Free-cash-flow margin	20.2%	18.4%	16.8%	21.2%	26.6%	27.4%	27.0%	33.2%	28.2%	26.5%	30.5%	36.6%	40.3%	35.3%	32.6%	35.7%
Return on equity	7.6%	5.9%	5.7%	7.0%	3.9%	4.7%	5.2%	5.7%	5.8%	6.1%	5.5%	6.0%	9.0%	10.4%	10.9%	10.9%
Return on assets	—	4.8%	4.8%	6.0%	3.1%	3.8%	4.6%	5.0%	4.8%	4.9%	4.6%	5.2%	7.7%	—	8.7%	9.2%
Asset turnover	—	0.41	0.46	0.47	0.49	0.43	0.41	0.43	0.42	0.43	0.41	0.35	0.38	—	0.40	0.41
Current ratio	—	4.38	4.04	2.85	2.49	3.92	1.87	1.35	1.11	1.03	1.13	1.95	2.19	—	1.62	2.16
Debt to equity	0.0%	0.0%	0.0%	0.0%	16.2%	—	0.0%	0.0%	7.4%	4.8%	—	0.0%	0.0%	—	0.0%	0.0%
Interest cover (operating income ÷ interest)	—	—	—	—	14.8x	20.8x	53.8x	50.2x	27.7x	19.5x	11.8x	60.2x	92.1x	104.8x	180.4x	—
Effective tax rate	—	−45.5%	21.9%	7.1%	30.0%	31.0%	26.0%	24.3%	22.6%	20.8%	23.0%	26.0%	15.9%	23.3%	25.2%	24.6%
R&D as % of revenue	19.6%	17.1%	16.7%	16.8%	17.1%	16.4%	16.9%	17.4%	17.6%	17.4%	16.4%	15.5%	14.7%	14.7%	14.7%	14.4%
Capital spending as % of revenue	2.2%	1.7%	4.2%	2.8%	1.6%	1.6%	2.3%	2.4%	2.1%	1.9%	1.5%	1.1%	1.1%	1.0%	1.0%	0.8%
Free cash flow ÷ net income	103.9%	158.0%	159.6%	167.8%	418.5%	310.8%	242.8%	283.9%	249.5%	232.9%	268.5%	244.7%	198.5%	174.4%	148.3%	159.1%
Dividends and buybacks ÷ free cash flow	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	0.3%

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 3 checks passed · January 31, 2026

What it owns · $1.9bn

Short-term assets $482mLonger-term assets $1.4bn

What it owes, and who funded it · $1.9bn

Short-term liabilities $223mLonger-term liabilities $54mShareholders' equity $1.6bn

Short-term assets cover short-term liabilities $482m of assets due within a year against $223m of liabilities due within a year.
Short-term assets cover long-term liabilities $482m short-term assets against $54m 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 Operating income of $210m against $967,000 of interest.

From Descartes Systems Group 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

Not assessed: fewer than five years of comparable figures in the filings. AI disruption exposure for this industry: High.

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 Descartes Systems Group Inc's SEC filings (10-K and 10-Q). How we read and check them: methodology and data sources. Not investment advice. Back to Descartes Systems Group Inc.