Deswell Industries Inc key statistics and ratios

In fiscal 2026, Deswell Industries Inc had return on equity of 10.0%, an operating margin of 3.2%, debt equal to 0.0% of equity and a current ratio of 5.25. 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.

Deswell Industries Inc: financial ratios, annual
Fiscal year	2010Mar 2010	2011Mar 2011	2012Mar 2012	2013Mar 2013	2014Mar 2014	2015Mar 2015	2016Mar 2016	2017Mar 2017	2018Mar 2018	2019Mar 2019	2020Mar 2020	2021Mar 2021	2022Mar 2022	2023Mar 2023	2024Mar 2024	2025Mar 2025	2026Mar 2026
Gross margin	15.5%	11.4%	14.6%	13.5%	8.9%	11.1%	10.8%	16.7%	16.0%	15.4%	18.1%	20.3%	16.2%	16.6%	20.0%	20.2%	22.4%
Operating margin	2.1%	−10.5%	−3.3%	−6.1%	−16.7%	−12.6%	−12.0%	−4.7%	3.0%	0.8%	2.2%	5.0%	3.2%	3.7%	5.5%	4.9%	3.2%
Net margin	1.8%	−9.7%	−2.3%	−3.7%	−18.3%	−7.4%	−11.1%	3.1%	10.2%	6.4%	−2.0%	12.7%	9.6%	2.7%	11.1%	16.5%	17.3%
Free-cash-flow margin	15.6%	−5.0%	16.8%	14.0%	−6.7%	−8.6%	−0.1%	−7.3%	6.6%	1.9%	19.3%	4.2%	−2.0%	15.8%	18.5%	19.5%	7.7%
Return on equity	1.2%	−7.0%	−1.3%	−1.9%	−7.8%	−3.2%	−6.1%	1.8%	7.9%	5.2%	−1.6%	9.9%	9.3%	2.3%	8.4%	11.3%	10.0%
Return on assets	—	−6.4%	−1.2%	−1.7%	−7.0%	−2.8%	−5.4%	1.5%	6.5%	4.3%	−1.4%	8.1%	7.4%	1.8%	7.0%	9.6%	8.5%
Asset turnover	—	0.66	0.52	0.46	0.38	0.39	0.48	0.50	0.63	0.66	0.67	0.64	0.77	0.69	0.63	0.58	0.49
Current ratio	—	4.76	5.27	6.31	5.61	4.71	4.71	3.79	3.60	4.32	4.57	3.71	3.66	4.01	5.07	5.45	5.25
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%	0.0%
Effective tax rate	31.5%	—	—	—	—	—	—	13.2%	0.1%	3.3%	—	5.5%	−2.0%	11.0%	1.4%	1.4%	−3.5%
SG&A as % of revenue	19.0%	16.6%	18.9%	20.1%	25.1%	24.0%	20.5%	19.9%	14.5%	14.2%	15.3%	15.9%	13.1%	14.2%	15.1%	16.7%	18.8%
Capital spending as % of revenue	2.0%	1.2%	0.4%	1.8%	2.1%	2.3%	1.3%	4.8%	2.8%	1.3%	0.8%	0.8%	1.7%	1.0%	0.5%	0.5%	0.8%
Free cash flow ÷ net income	850.2%	—	—	—	—	—	—	−235.0%	64.5%	30.1%	—	33.3%	−20.5%	592.8%	166.4%	118.5%	44.4%
Dividends ÷ net income	108.0%	—	—	—	—	—	—	163.4%	18.0%	37.2%	—	34.8%	38.7%	154.8%	41.4%	28.6%	30.0%
Dividends and buybacks ÷ free cash flow	12.7%	—	22.4%	86.6%	—	—	—	—	27.9%	123.3%	18.9%	104.3%	—	26.1%	24.9%	24.1%	67.6%

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 · March 31, 2026

What it owns · $130m

Short-term assets $107mLonger-term assets $23m

What it owes, and who funded it · $130m

Short-term liabilities $20mLonger-term liabilities $0mShareholders' equity $109m

Short-term assets cover short-term liabilities $107m of assets due within a year against $20m of liabilities due within a year.
Short-term assets cover long-term liabilities $107m short-term assets against $211,000 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 Deswell Industries 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

20 /100

Weak moat

How hard Deswell Industries'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.

Pricing power 6 / 20

Gross margin has been a median 16.0%, moving by 4.3 percentage points (standard deviation) across 5 years.
Durability 0 / 20

Operating margin has been a median 3.0%; its worst year was -16.7%.
Cash conversion 9 / 20

Free cash flow was positive in 3 of 5 years, at a median 6.6% 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 (25 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 Deswell Industries Inc's SEC filings (10-K and 10-Q). How we read and check them: methodology and data sources. Not investment advice. Back to Deswell Industries Inc.