Franklin Covey Co key statistics and ratios

In fiscal 2025, Franklin Covey Co had return on equity of 4.1%, an operating margin of 2.1% and a current ratio of 0.82. 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.

Franklin Covey Co: financial ratios, annual
Fiscal year	2010Aug 2010	2011Aug 2011	2012Aug 2012	2013Aug 2013	2014Aug 2014	2015Aug 2015	2016Aug 2016	2017Aug 2017	2018Aug 2018	2019Aug 2019	2020Aug 2020	2021Aug 2021	2022Aug 2022	2023Aug 2023	2024Aug 2024	2025Aug 2025	LTMMay 2026
Gross margin	65.1%	64.3%	66.1%	67.6%	67.4%	65.8%	67.6%	66.2%	70.7%	70.7%	73.3%	77.1%	76.8%	76.1%	77.0%	76.2%	75.2%
Operating margin	3.0%	6.9%	10.3%	11.3%	12.1%	9.3%	6.9%	−4.8%	−1.6%	1.2%	1.5%	3.6%	9.0%	9.4%	11.5%	2.1%	2.4%
Net margin	−0.4%	3.0%	4.6%	7.5%	8.8%	5.3%	3.5%	−3.9%	−2.8%	−0.5%	−4.8%	6.1%	7.0%	6.3%	8.1%	1.1%	0.8%
Free-cash-flow margin	4.1%	8.3%	7.8%	7.0%	7.1%	11.3%	14.3%	5.5%	4.9%	11.7%	11.8%	19.9%	18.7%	11.1%	19.7%	7.8%	7.3%
Return on equity	—	6.1%	9.2%	14.5%	15.5%	8.8%	6.4%	−8.0%	−7.1%	−1.3%	−13.3%	19.6%	22.7%	22.0%	28.9%	4.1%	4.0%
Return on assets	−0.3%	3.2%	5.0%	8.1%	9.2%	5.5%	3.6%	−3.6%	−2.8%	−0.5%	−4.4%	6.0%	7.2%	7.0%	9.2%	1.2%	1.0%
Asset turnover	0.92	1.07	1.08	1.08	1.04	1.03	1.02	0.92	0.99	1.03	0.92	0.99	1.03	1.11	1.13	1.06	1.19
Current ratio	—	1.47	1.75	1.89	2.17	2.41	1.66	1.14	1.06	1.15	0.99	1.00	1.01	0.96	0.99	0.82	0.66
Debt to equity	—	38.3%	32.6%	26.8%	21.6%	20.8%	26.3%	27.0%	39.0%	26.4%	32.0%	30.9%	15.8%	9.4%	1.9%	—	0.0%
Interest cover (operating income ÷ interest)	1.4x	4.1x	7.1x	9.3x	11.1x	9.1x	6.1x	n/m	n/m	1.1x	1.3x	3.9x	14.1x	16.7x	29.5x	10.1x	19.1x
Effective tax rate	—	46.8%	43.0%	26.2%	17.0%	36.2%	41.1%	—	—	—	—	—	16.5%	31.3%	29.2%	49.4%	66.0%
SG&A as % of revenue	56.7%	53.0%	52.5%	53.0%	51.6%	51.8%	56.8%	65.4%	65.9%	62.4%	65.5%	68.5%	63.9%	63.4%	61.3%	68.4%	67.4%
Capital spending as % of revenue	1.0%	1.4%	1.3%	1.1%	1.7%	1.2%	2.0%	3.9%	3.1%	1.8%	2.1%	0.7%	1.2%	1.6%	1.3%	3.1%	3.1%
Free cash flow ÷ net income	—	277.0%	169.4%	93.3%	81.1%	213.6%	408.7%	—	—	—	—	327.2%	266.3%	175.6%	241.7%	675.5%	882.5%
Dividends and buybacks ÷ free cash flow	0.9%	1.6%	3.3%	9.8%	29.9%	60.8%	152.0%	53.4%	19.4%	0.0%	59.8%	6.7%	48.6%	113.9%	54.4%	127.3%	163.3%

US$ thousands unless shown otherwise. Fiscal quarters.

Franklin Covey Co: financial ratios, quarterly
Quarter	2024 Q4Aug 2024	2025 Q1Nov 2024	2025 Q2Feb 2025	2025 Q3May 2025	2025 Q4Aug 2025	2026 Q1Nov 2025	2026 Q2Feb 2026	2026 Q3May 2026
Gross margin	78.1%	76.3%	76.7%	76.5%	75.5%	75.5%	75.9%	73.9%
Operating margin	21.3%	2.1%	−2.4%	−3.3%	11.1%	−5.7%	−3.4%	6.2%
Net margin	14.2%	1.7%	−1.8%	−2.1%	6.1%	−5.1%	−3.3%	4.5%
Free-cash-flow margin	24.7%	19.0%	−4.4%	6.7%	8.0%	−2.5%	25.5%	−0.0%
Current ratio	0.99	0.97	0.90	0.84	0.82	0.73	0.63	0.66
Debt to equity	0.9%	—	—	—	—	—	—	—
SG&A as % of revenue	54.5%	68.3%	75.6%	68.9%	62.1%	72.0%	72.9%	63.8%

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 3 checks passed · May 31, 2026

What it owns · $198m

Short-term assets $92mLonger-term assets $106m

What it owes, and who funded it · $198m

Short-term liabilities $140mLonger-term liabilities $15mShareholders' equity $43m

Short-term assets cover short-term liabilities $92m of assets due within a year against $140m of liabilities due within a year.
Short-term assets cover long-term liabilities $92m short-term assets against $15m 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 $6m against $336,000 of interest.

From Franklin Covey Co'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

54 /100

Moderate moat

How hard Franklin Covey'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 16 / 20

Cash operating profit has been a median 12.1% of total assets over 10 years.
Pricing power 18 / 20

Gross margin has been a median 75.5%, moving by 3.6 percentage points (standard deviation) across 10 years.
Durability 0 / 20

Operating margin has been a median 3.7%; its worst year was -1.7%.
Cash conversion 16 / 20

Free cash flow was positive in 10 of 10 years, at a median 12.1% of revenue.
Discipline 19 / 20

The diluted share count fell 14.1% over five years; stock-based pay has been a median 2.6% 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 (69 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 Franklin Covey Co'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 Franklin Covey Co.