Houlihan Lokey, Inc. key statistics and ratios

In fiscal 2026, Houlihan Lokey, Inc. had return on equity of 18.8%, an operating margin of 20.1% and debt equal to 0.0% of equity. 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.

Houlihan Lokey, Inc.: financial ratios, annual
Fiscal year	2017Mar 2017	2018Mar 2018	2019Mar 2019	2020Mar 2020	2021Mar 2021	2022Mar 2022	2023Mar 2023	2024Mar 2024	2025Mar 2025	2026Mar 2026	LTMSept 2026
Gross margin	27.7%	28.8%	28.2%	27.8%	34.2%	35.0%	30.8%	29.8%	32.3%	—	—
Operating margin	20.9%	22.3%	20.2%	19.8%	26.8%	27.0%	18.9%	19.5%	21.0%	20.1%	20.3%
Net margin	12.4%	17.9%	14.7%	15.9%	20.5%	19.3%	14.0%	14.6%	16.7%	16.3%	15.8%
Free-cash-flow margin	27.2%	25.2%	20.1%	23.0%	37.1%	32.1%	4.7%	13.7%	33.9%	26.0%	15.7%
Return on equity	14.9%	21.8%	18.2%	19.6%	26.4%	31.0%	16.6%	16.2%	19.9%	18.8%	17.4%
Return on assets	7.8%	12.3%	11.2%	11.8%	15.2%	16.5%	8.7%	9.1%	11.4%	10.5%	9.7%
Asset turnover	0.63	0.69	0.76	0.75	0.74	0.85	0.62	0.62	0.68	0.64	0.62
Debt to equity	4.5%	1.4%	3.5%	3.7%	4.0%	9.3%	0.0%	0.0%	0.0%	0.0%	0.0%
Effective tax rate	39.3%	20.9%	29.1%	22.0%	23.6%	27.4%	21.5%	28.2%	24.8%	24.6%	26.6%
Capital spending as % of revenue	1.7%	0.8%	0.6%	1.8%	0.9%	0.4%	2.8%	3.5%	1.7%	0.9%	1.0%
Free cash flow ÷ net income	219.3%	141.0%	136.7%	145.2%	180.9%	166.3%	33.6%	93.4%	202.4%	160.2%	99.6%
Dividends ÷ net income	51.0%	30.2%	42.1%	43.9%	29.4%	26.2%	55.2%	53.0%	41.3%	40.9%	46.4%
Dividends and buybacks ÷ free cash flow	23.3%	28.9%	62.7%	41.3%	34.3%	57.6%	221.0%	66.3%	26.9%	51.3%	105.6%

US$ thousands unless shown otherwise. Fiscal quarters.

Houlihan Lokey, Inc.: financial ratios, quarterly
Quarter	2025 Q3Dec 2024	2025 Q4Mar 2025	2026 Q1Jun 2025	2026 Q2Sept 2025	2026 Q3Dec 2025	2026 Q4Mar 2026	2027 Q1Jun 2026	2027 Q2Sept 2026
Gross margin	31.4%	33.9%	31.1%	33.6%	32.2%	—	30.1%	34.5%
Operating margin	21.5%	21.2%	14.9%	22.9%	22.4%	19.7%	15.3%	22.3%
Net margin	15.0%	18.3%	16.2%	16.8%	16.3%	15.7%	15.3%	15.8%
Free-cash-flow margin	41.2%	51.6%	−24.0%	48.9%	30.3%	45.1%	−66.9%	34.7%

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.

Moat

77 /100

Strong moat

How hard Houlihan Lokey'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

Net income has been a median 11.3% of total assets over 10 years.
Durability 16 / 20

Operating margin has been a median 20.8%; its worst year was 19.0%.
Discipline 13 / 20

The diluted share count fell 1.7% over five years; stock-based pay has been a median 5.7% 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 (82 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 Houlihan Lokey, Inc.'s SEC filings (10-K and 10-Q), retrieved October 30, 2026. How we read and check them: methodology and data sources. Not investment advice. Back to Houlihan Lokey, Inc.