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ESAB Corp key statistics and ratios

In fiscal 2025, ESAB Corp had return on equity of 11.5%, an operating margin of 14.5%, debt equal to 57.4% of equity and a current ratio of 1.90. 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.

Fiscal year2020Dec 20202021Dec 20212022Dec 20222023Dec 20232024Dec 20242025Dec 2025LTMJul 2026
Gross margin35.0%34.5%34.1%36.6%37.9%36.9%37.0%
Operating margin10.4%12.6%12.7%14.6%16.3%14.5%12.1%
Net margin8.1%9.7%8.6%7.4%9.7%8.0%5.7%
Free-cash-flow margin13.8%8.9%6.7%10.2%11.1%7.5%6.5%
Return on equity6.2%9.4%11.7%13.9%15.7%11.5%7.3%
Return on assets—6.8%6.2%5.4%6.7%5.2%3.0%
Asset turnover—0.700.720.730.700.650.53
Current ratio—1.621.641.611.821.901.96
Debt to equity0.0%0.0%90.4%63.4%61.3%57.4%95.2%
Effective tax rate22.3%25.2%23.0%30.0%20.9%21.1%21.2%
R&D as % of revenue1.8%1.6%1.4%1.4%1.4%1.5%1.6%
SG&A as % of revenue23.5%21.1%20.6%21.2%21.2%21.4%23.2%
Capital spending as % of revenue2.1%1.5%1.6%1.7%1.9%1.7%2.1%
Free cash flow ÷ net income170.9%91.5%77.8%137.5%114.6%94.1%114.0%
Dividends ÷ net income0.0%0.0%2.7%6.5%6.4%9.7%14.1%
Dividends and buybacks ÷ free cash flow0.0%0.0%3.5%4.7%5.6%10.3%12.4%

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

1 of 6 checks passed · July 3, 2026
What it owns · $6.6bn
Short-term assets $1.5bnLonger-term assets $5.0bn
What it owes, and who funded it · $6.5bn
Short-term liabilities $779mLonger-term liabilities $3.2bnShareholders' equity $2.5bn
  • Short-term assets cover short-term liabilities $1.5bn of assets due within a year against $779m of liabilities due within a year.
  • Short-term assets cover long-term liabilities $1.5bn short-term assets against $3.2bn of longer-dated liabilities.
  • More cash than debt $217m of cash against $2.4bn 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 0% to 94% over five years.
  • A year's operating cash flow covers at least 20% of debt $259m of operating cash flow against $2.4bn of debt.
  • Operating profit covers interest at least five times over Interest not separately reported. Not assessable.

From ESAB 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

60 /100

Moderate moat

How hard ESAB'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 8 / 20

    Net income has been a median 5.7% of total assets over 5 years.

  • Pricing power 13 / 20

    Gross margin has been a median 37.0%, moving by 1.3 percentage points (standard deviation) across 5 years.

  • Durability 13 / 20

    Operating margin has been a median 13.3%; its worst year was 12.1%.

  • Cash conversion 14 / 20

    Free cash flow was positive in 5 of 5 years, at a median 8.5% of revenue.

AI disruption exposure: Low. In this industry, the business rests on physical assets, regulated networks or products AI itself depends on.

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

Compare with peers

Head to head: ESAB vs NDSNCR vs ESABESAB vs MIDD

More: Industrial Machinery & Supplies & Components stocks compared, Industrials sector, rankings of US companies

Figures from ESAB Corp's SEC filings (10-K and 10-Q), retrieved October 20, 2026. How we read and check them: methodology and data sources. Not investment advice. Back to ESAB Corp.