New Oriental Education & Technology Group Inc. key statistics and ratios

In fiscal 2026, New Oriental Education & Technology Group Inc. had return on equity of 12.4%, an operating margin of 11.4% and a current ratio of 1.50. 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.

New Oriental Education & Technology Group Inc.: financial ratios, annual
Fiscal year	2010May 2010	2011May 2011	2012May 2012	2013May 2013	2014May 2014	2015May 2015	2016May 2016	2017May 2017	2018May 2018	2019May 2019	2020May 2020	2021May 2021	2022May 2022	2023May 2023	2024May 2024	2025May 2025	2026May 2026
Gross margin	61.9%	60.4%	61.1%	60.0%	60.3%	57.8%	58.4%	58.3%	56.5%	55.6%	55.6%	52.4%	43.5%	53.0%	52.5%	55.4%	54.6%
Operating margin	20.0%	17.4%	16.0%	12.8%	17.3%	12.3%	13.4%	14.6%	10.7%	9.9%	11.1%	2.7%	−31.6%	6.3%	8.1%	8.7%	11.4%
Net margin	20.1%	18.9%	17.6%	14.2%	18.9%	15.5%	15.2%	15.3%	12.1%	7.7%	11.5%	7.8%	−38.2%	5.9%	7.2%	7.6%	8.4%
Free-cash-flow margin	31.7%	30.9%	23.6%	23.1%	28.9%	25.6%	31.1%	28.7%	23.2%	17.3%	13.8%	16.4%	−46.1%	27.6%	20.2%	13.4%	13.8%
Return on equity	18.2%	20.3%	21.0%	17.6%	22.9%	17.2%	17.1%	17.8%	16.1%	10.9%	16.2%	8.7%	−27.6%	4.9%	8.4%	10.0%	12.4%
Return on assets	13.0%	13.9%	13.3%	11.0%	14.6%	10.9%	10.4%	10.4%	8.6%	5.5%	7.4%	4.0%	−14.7%	2.9%	4.4%	4.8%	5.7%
Asset turnover	0.65	0.74	0.76	0.77	0.77	0.70	0.69	0.68	0.71	0.72	0.64	0.51	0.38	0.48	0.62	0.64	0.68
Current ratio	2.75	2.34	2.04	2.19	2.14	1.86	2.04	1.93	1.68	1.73	1.52	1.89	2.62	1.96	1.80	1.58	1.50
Debt to equity	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	4.1%	4.3%	6.1%	1.8%	0.4%	0.4%	0.4%	—
Interest cover (operating income ÷ interest)	—	—	—	—	—	—	—	—	—	189.2x	86.2x	17.4x	n/m	—	—	—	—
Effective tax rate	7.2%	7.5%	7.5%	10.0%	10.7%	11.9%	14.0%	15.3%	16.6%	27.1%	27.5%	26.5%	—	21.4%	22.2%	27.3%	26.8%
Capital spending as % of revenue	5.1%	9.1%	9.5%	6.4%	2.8%	4.4%	4.4%	5.9%	8.8%	8.7%	8.6%	10.0%	4.9%	4.8%	5.8%	4.9%	4.4%
Free cash flow ÷ net income	157.3%	163.8%	133.9%	163.0%	152.8%	165.2%	204.5%	188.4%	191.4%	225.4%	119.7%	209.6%	—	466.9%	282.1%	176.1%	164.2%
Dividends ÷ net income	—	—	—	34.5%	25.3%	—	27.9%	—	24.0%	—	—	—	—	—	—	26.4%	20.3%
Dividends and buybacks ÷ free cash flow	24.5%	—	—	34.0%	23.0%	18.6%	13.6%	—	12.6%	10.4%	—	—	—	23.1%	7.2%	83.1%	41.9%

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 · May 31, 2026

What it owns · $8.8bn

Short-term assets $5.8bnLonger-term assets $3.0bn

What it owes, and who funded it · $8.5bn

Short-term liabilities $3.9bnLonger-term liabilities $578mShareholders' equity $4.0bn

Short-term assets cover short-term liabilities $5.8bn of assets due within a year against $3.9bn of liabilities due within a year.
Short-term assets cover long-term liabilities $5.8bn short-term assets against $578m 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 $643m against $28,000 of interest.

From New Oriental Education & Technology 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

52 /100

Moderate moat

How hard New Oriental Education & Technology Group'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.

Returns on capital 11 / 20

Net income has been a median 7.4% of total assets over 5 years.
Pricing power 15 / 20

Gross margin has been a median 56.5%, moving by 6.5 percentage points (standard deviation) across 5 years.
Durability 3 / 20

Operating margin has been a median 11.4%; its worst year was -31.6%.
Cash conversion 18 / 20

Free cash flow was positive in 4 of 5 years, at a median 23.2% 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 (57 before it).

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 New Oriental Education & Technology 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 New Oriental Education & Technology Group Inc.