Hongli Group Inc. key statistics and ratios

In fiscal 2025, Hongli Group Inc. had return on equity of 3.5%, an operating margin of 12.4%, debt equal to 5.9% of equity and a current ratio of 1.12. 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.

Hongli Group Inc.: financial ratios, annual
Fiscal year	2020Dec 2020	2021Dec 2021	2022Dec 2022	2023Dec 2023	2024Dec 2024	2025Dec 2025
Gross margin	39.9%	35.3%	34.6%	32.8%	32.0%	32.5%
Operating margin	22.1%	18.1%	14.4%	6.4%	−11.2%	12.4%
Net margin	21.7%	14.7%	14.5%	5.4%	−13.3%	9.9%
Free-cash-flow margin	21.5%	0.6%	−12.9%	3.6%	−3.2%	3.4%
Return on equity	30.2%	32.8%	23.5%	5.0%	−5.0%	3.5%
Return on assets	—	14.7%	10.1%	2.5%	−3.9%	2.8%
Asset turnover	—	0.99	0.70	0.47	0.29	0.29
Current ratio	—	1.18	1.13	1.41	1.45	1.12
Debt to equity	0.0%	52.5%	120.3%	43.1%	18.0%	5.9%
Interest cover (operating income ÷ interest)	9.6x	12.5x	7.9x	1.6x	n/m	14.7x
Effective tax rate	9.0%	7.6%	8.7%	7.3%	—	10.5%
R&D as % of revenue	5.8%	6.8%	7.0%	6.0%	5.8%	5.1%
SG&A as % of revenue	17.8%	17.1%	20.2%	26.4%	43.3%	—
Capital spending as % of revenue	5.2%	4.6%	25.1%	1.9%	0.2%	1.1%
Free cash flow ÷ net income	98.8%	4.2%	−88.9%	67.4%	—	34.0%

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 · December 31, 2025

What it owns · $72m

Short-term assets $16mLonger-term assets $56m

What it owes, and who funded it · $72m

Short-term liabilities $14mLonger-term liabilities $0mShareholders' equity $58m

Short-term assets cover short-term liabilities $16m of assets due within a year against $14m of liabilities due within a year.
Short-term assets cover long-term liabilities $16m short-term assets against $0 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 $2m against $165,003 of interest.

From Hongli 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

Not assessed: fewer than five years of comparable figures in the filings. AI disruption exposure for this industry: Medium.

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 Hongli 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 Hongli Group Inc.