Educational Development Corp key statistics and ratios

In fiscal 2026, Educational Development Corp had return on equity of 5.6%, a net margin of 10.1%, debt equal to 0.0% of equity and a current ratio of 3.33. 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.

Educational Development Corp: financial ratios, annual
Fiscal year	2011Feb 2011	2012Feb 2012	2013Feb 2013	2014Feb 2014	2015Feb 2015	2016Feb 2016	2017Feb 2017	2018Feb 2018	2019Feb 2019	2020Feb 2020	2021Feb 2021	2022Feb 2022	2023Feb 2023	2024Feb 2024	2025Feb 2025	2026Feb 2026	LTMAug 2026
Gross margin	62.2%	59.8%	58.8%	59.7%	60.8%	67.8%	73.2%	68.0%	67.1%	67.4%	70.7%	68.9%	63.8%	64.6%	61.5%	59.4%	60.1%
Net margin	4.3%	5.4%	3.2%	1.4%	2.6%	3.3%	2.7%	4.7%	5.6%	5.0%	6.2%	5.8%	−2.9%	1.1%	−15.4%	10.1%	8.6%
Free-cash-flow margin	10.3%	2.7%	2.4%	10.3%	−1.8%	−28.7%	−3.8%	7.0%	2.1%	3.2%	1.8%	−17.5%	−1.7%	15.5%	8.1%	6.4%	0.9%
Return on equity	8.0%	9.8%	5.8%	2.7%	6.9%	16.6%	20.1%	29.3%	28.8%	20.4%	36.2%	19.1%	−5.4%	1.2%	−12.2%	5.6%	4.2%
Return on assets	6.2%	7.7%	4.5%	2.1%	4.9%	6.3%	4.9%	8.2%	10.2%	8.4%	16.4%	8.4%	−2.4%	0.6%	−6.3%	3.5%	3.3%
Asset turnover	1.46	1.43	1.42	1.51	1.87	1.88	1.84	1.75	1.81	1.69	2.67	1.43	0.84	0.54	0.41	0.35	0.38
Current ratio	3.89	3.91	3.30	3.37	2.69	1.20	1.28	1.57	1.76	2.27	1.53	1.90	1.17	3.88	1.40	3.33	3.27
Debt to equity	0.5%	1.8%	9.3%	0.0%	11.4%	163.5%	173.8%	96.9%	76.3%	64.0%	40.3%	91.4%	101.1%	75.0%	76.4%	0.0%	0.0%
Effective tax rate	37.5%	37.6%	37.4%	59.1%	38.7%	40.2%	38.0%	33.4%	27.3%	27.2%	26.7%	26.1%	—	25.6%	—	56.5%	69.3%
SG&A as % of revenue	26.0%	25.5%	26.3%	27.8%	29.2%	30.5%	21.6%	15.8%	15.6%	16.5%	17.7%	16.2%	18.0%	17.2%	16.8%	15.1%	15.0%
Capital spending as % of revenue	0.1%	0.3%	0.1%	0.3%	1.0%	39.2%	2.3%	1.3%	1.2%	0.6%	2.0%	2.6%	1.8%	1.6%	1.3%	2.4%	2.1%
Free cash flow ÷ net income	239.3%	49.8%	75.9%	751.6%	−68.3%	−861.7%	−141.8%	149.5%	38.1%	63.9%	29.1%	−299.3%	—	>999%	—	62.9%	10.3%
Dividends ÷ net income	169.7%	131.6%	234.7%	355.6%	148.8%	64.9%	51.3%	0.0%	18.4%	29.4%	17.9%	41.3%	—	0.0%	—	—	—
Dividends and buybacks ÷ free cash flow	70.9%	264.2%	309.1%	47.3%	—	—	—	0.0%	48.2%	46.1%	61.4%	—	—	7.1%	0.0%	9.4%	—

US$ thousands unless shown otherwise. Fiscal quarters.

Educational Development Corp: financial ratios, quarterly
Quarter	2025 Q3Nov 2024	2025 Q4Feb 2025	2026 Q1May 2025	2026 Q2Aug 2025	2026 Q3Nov 2025	2026 Q4Feb 2026	2027 Q1May 2026	2027 Q2Aug 2026
Gross margin	62.5%	60.5%	58.2%	58.2%	61.5%	59.1%	59.3%	59.7%
Net margin	−7.6%	−20.3%	−15.1%	−28.0%	111.3%	−74.4%	−29.3%	−38.8%
Free-cash-flow margin	39.2%	−25.6%	16.7%	−0.8%	34.3%	−50.1%	9.8%	−14.8%
Current ratio	3.64	1.40	1.35	1.30	3.40	3.33	3.20	3.27
Debt to equity	64.9%	65.8%	66.4%	67.5%	0.0%	0.0%	—	—
SG&A as % of revenue	15.8%	11.2%	14.0%	16.0%	16.9%	13.0%	14.2%	14.8%

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 · August 31, 2026

What it owns · $51m

Short-term assets $18mLonger-term assets $33m

What it owes, and who funded it · $51m

Short-term liabilities $6mLonger-term liabilities $5mShareholders' equity $40m

Short-term assets cover short-term liabilities $18m of assets due within a year against $6m of liabilities due within a year.
Short-term assets cover long-term liabilities $18m short-term assets against $5m 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 Educational Development Corp'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

49 /100

Moderate moat

How hard Educational Development'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 49.4% of total assets over 10 years.
Pricing power 18 / 20

Gross margin has been a median 67.2%, moving by 3.6 percentage points (standard deviation) across 10 years.
Durability 0 / 20

Net margin has been a median 4.6%; its worst year was -15.5%.
Cash conversion 9 / 20

Free cash flow was positive in 7 of 10 years, at a median 4.8% of revenue.
Discipline 17 / 20

The diluted share count rose 0.6% over five years; stock-based pay has been a median 0.5% of revenue.

AI disruption exposure: High. In this industry, the core product is information work that AI systems increasingly perform. The score above includes a 15-point deduction for that exposure (64 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 Educational Development Corp's SEC filings (10-K and 10-Q), retrieved October 29, 2026. How we read and check them: methodology and data sources. Not investment advice. Back to Educational Development Corp.