Hennessy Advisors Inc key statistics and ratios

In fiscal 2025, Hennessy Advisors Inc had return on equity of 10.5%, an operating margin of 37.0%, debt equal to 40.7% of equity and a current ratio of 12.72. 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.

Hennessy Advisors Inc: financial ratios, annual
Fiscal year	2010Sept 2010	2011Sept 2011	2012Sept 2012	2013Sept 2013	2014Sept 2014	2015Sept 2015	2016Sept 2016	2017Sept 2017	2018Sept 2018	2019Sept 2019	2020Sept 2020	2021Sept 2021	2022Sept 2022	2023Sept 2023	2024Sept 2024	2025Sept 2025	LTMJun 2026
Operating margin	21.0%	28.1%	25.2%	36.7%	41.0%	44.3%	46.3%	46.3%	44.8%	37.5%	33.9%	33.2%	33.2%	26.4%	29.9%	37.0%	33.4%
Net margin	11.8%	15.9%	13.7%	19.8%	22.2%	25.5%	27.9%	28.2%	37.8%	25.8%	23.5%	24.1%	20.9%	19.9%	23.9%	28.0%	24.8%
Free-cash-flow margin	25.5%	23.9%	27.4%	24.3%	26.9%	31.7%	35.0%	37.1%	38.8%	33.2%	31.3%	30.9%	28.5%	28.8%	30.2%	37.6%	30.5%
Return on equity	3.7%	4.9%	3.9%	17.5%	22.8%	37.6%	47.6%	33.6%	33.7%	15.1%	10.2%	9.8%	7.3%	5.5%	7.9%	10.5%	8.3%
Return on assets	2.9%	3.8%	3.0%	9.0%	10.2%	15.3%	18.2%	16.4%	19.9%	10.0%	7.7%	8.0%	5.0%	3.3%	4.8%	6.4%	5.8%
Asset turnover	0.24	0.24	0.22	0.45	0.46	0.60	0.65	0.58	0.53	0.39	0.33	0.33	0.24	0.17	0.20	0.23	0.24
Current ratio	5.47	6.13	5.28	0.94	1.64	0.92	0.90	1.78	2.55	2.55	2.63	3.54	13.07	15.20	13.78	12.72	9.39
Debt to equity	12.8%	10.3%	7.6%	100.7%	71.4%	151.5%	80.9%	50.4%	30.6%	23.0%	—	0.0%	45.0%	44.6%	43.2%	40.7%	0.0%
Interest cover (operating income ÷ interest)	46.4x	33.0x	34.9x	13.4x	13.0x	19.6x	19.3x	19.5x	19.9x	14.8x	25.3x	—	4.6x	2.8x	3.9x	5.7x	4.5x
Effective tax rate	42.4%	41.7%	44.0%	40.9%	41.3%	39.4%	36.3%	35.7%	11.9%	27.8%	28.5%	27.4%	22.1%	27.7%	26.9%	26.9%	26.5%
Capital spending as % of revenue	0.9%	0.7%	1.4%	1.0%	0.4%	0.6%	0.4%	0.3%	0.7%	0.5%	0.5%	0.8%	0.7%	0.9%	1.1%	1.2%	1.0%
Free cash flow ÷ net income	215.6%	150.3%	199.4%	122.5%	120.9%	124.6%	125.3%	131.6%	102.7%	128.6%	133.3%	128.3%	136.5%	145.0%	126.3%	134.1%	123.2%
Dividends ÷ net income	57.2%	77.8%	70.5%	15.1%	11.7%	12.1%	10.4%	14.8%	14.0%	32.1%	50.6%	50.3%	65.3%	86.0%	58.5%	42.2%	53.8%
Dividends and buybacks ÷ free cash flow	37.7%	51.8%	35.4%	12.3%	9.7%	186.4%	8.3%	11.2%	13.6%	58.4%	63.9%	39.2%	47.8%	59.3%	46.3%	31.5%	43.7%

US$ thousands unless shown otherwise. Fiscal quarters.

Hennessy Advisors Inc: financial ratios, quarterly
Quarter	2024 Q4Sept 2024	2025 Q1Dec 2024	2025 Q2Mar 2025	2025 Q3Jun 2025	2025 Q4Sept 2025	2026 Q1Dec 2025	2026 Q2Mar 2026	2026 Q3Jun 2026
Operating margin	33.5%	39.5%	37.2%	35.4%	35.5%	31.3%	32.1%	34.7%
Net margin	26.5%	29.2%	27.8%	26.3%	28.5%	23.2%	23.5%	23.8%
Free-cash-flow margin	38.0%	21.8%	39.5%	49.0%	42.6%	7.2%	27.6%	44.2%
Current ratio	13.78	18.29	17.79	15.58	12.72	1.75	1.78	9.39
Debt to equity	43.2%	42.4%	41.6%	41.1%	40.7%	0.0%	0.0%	0.0%

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.

Moat

81 /100

Strong moat

How hard Hennessy Advisors'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 7.1% of total assets over 10 years.
Durability 20 / 20

Operating margin has been a median 34.1%; its worst year was 27.3%.
Discipline 11 / 20

The diluted share count rose 7.1% over five years; stock-based pay has been a median 4.3% 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 (86 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 Hennessy Advisors Inc'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 Hennessy Advisors Inc.