Resources Connection, Inc. key statistics and ratios

In fiscal 2026, Resources Connection, Inc. had return on equity of -21.5%, an operating margin of -8.5%, debt equal to 0.0% of equity and a current ratio of 2.51. 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.

Resources Connection, Inc.: financial ratios, annual
Fiscal year	2017May 2017	2018May 2018	2019May 2019	2020May 2020	2021May 2021	2022May 2022	2023May 2023	2024May 2024	2025May 2025	2026May 2026	LTMAug 2026
Gross margin	37.9%	37.6%	38.7%	39.2%	38.3%	39.3%	40.4%	38.9%	37.6%	37.5%	37.0%
Operating margin	5.9%	4.7%	6.9%	5.2%	3.6%	10.4%	9.4%	4.5%	−35.7%	−8.5%	−10.1%
Net margin	3.2%	2.9%	4.3%	4.0%	4.0%	8.3%	7.0%	3.3%	−34.8%	−9.0%	−10.7%
Free-cash-flow margin	4.0%	2.0%	5.0%	6.7%	5.7%	5.8%	10.3%	3.3%	2.9%	0.1%	−2.5%
Return on equity	7.8%	7.4%	11.4%	9.7%	8.0%	19.1%	13.8%	5.0%	−61.3%	−21.5%	−27.9%
Return on assets	5.1%	4.7%	7.3%	5.9%	4.8%	12.2%	9.8%	4.0%	−47.0%	−14.4%	−18.9%
Asset turnover	1.60	1.64	1.69	1.47	1.20	1.46	1.39	1.21	1.35	1.61	1.76
Current ratio	2.32	2.06	2.10	2.43	2.33	2.48	2.72	3.32	2.70	2.51	2.85
Debt to equity	20.2%	23.4%	15.2%	29.0%	13.0%	14.5%	0.0%	0.0%	0.0%	0.0%	0.0%
Interest cover (operating income ÷ interest)	54.7x	17.7x	22.9x	17.8x	14.3x	78.4x	131.9x	—	—	—	—
Effective tax rate	44.8%	34.8%	34.4%	19.7%	−11.2%	19.0%	25.1%	29.5%	—	—	—
SG&A as % of revenue	31.4%	32.0%	30.7%	32.4%	33.3%	27.9%	29.5%	33.0%	36.6%	44.9%	46.0%
Capital spending as % of revenue	0.8%	0.3%	0.9%	0.3%	0.6%	0.4%	0.3%	0.2%	0.5%	0.2%	0.2%
Free cash flow ÷ net income	125.9%	69.9%	116.7%	166.8%	143.1%	69.2%	146.5%	98.8%	—	—	—
Dividends ÷ net income	75.9%	75.8%	51.3%	62.2%	72.3%	27.7%	34.6%	89.5%	—	—	—
Dividends and buybacks ÷ free cash flow	566.5%	147.3%	125.4%	47.9%	50.5%	82.3%	42.7%	129.1%	195.5%	>999%	—

US$ thousands unless shown otherwise. Fiscal quarters.

Resources Connection, Inc.: financial ratios, quarterly
Quarter	2025 Q2Nov 2024	2025 Q3Feb 2025	2025 Q4May 2025	2026 Q1Aug 2025	2026 Q2Nov 2025	2026 Q3Feb 2026	2026 Q4May 2026	2027 Q1Aug 2026
Gross margin	38.5%	35.1%	40.2%	39.5%	37.1%	35.7%	37.6%	37.4%
Operating margin	−52.7%	−38.4%	−47.0%	−1.7%	−10.3%	−7.7%	−14.9%	−7.4%
Net margin	−47.2%	−34.0%	−52.6%	−2.0%	−10.8%	−8.8%	−15.1%	−8.1%
Free-cash-flow margin	0.0%	0.2%	11.8%	−6.6%	13.2%	−8.2%	1.7%	−19.5%
Current ratio	2.74	2.63	2.70	3.21	2.64	2.74	2.51	2.85
Debt to equity	0.0%	0.0%	0.0%	—	—	—	—	—
SG&A as % of revenue	35.2%	39.5%	36.3%	39.9%	46.2%	42.5%	51.5%	43.9%

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 2 checks passed · August 29, 2026

What it owns · $232m

Short-term assets $146mLonger-term assets $86m

What it owes, and who funded it · $232m

Short-term liabilities $51mLonger-term liabilities $20mShareholders' equity $161m

Short-term assets cover short-term liabilities $146m of assets due within a year against $51m of liabilities due within a year.
Short-term assets cover long-term liabilities $146m short-term assets against $20m 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 Interest not separately reported. Not assessable.

From Resources Connection, 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

36 /100

Weak moat

How hard Resources Connection'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 12 / 20

Cash operating profit has been a median 9.6% of total assets over 10 years.
Pricing power 14 / 20

Gross margin has been a median 38.3%, moving by 0.9 percentage points (standard deviation) across 9 years.
Durability 0 / 20

Operating margin has been a median 5.1%; its worst year was -36.3%.
Cash conversion 11 / 20

Free cash flow was positive in 8 of 9 years, at a median 3.8% of revenue.
Discipline 16 / 20

The diluted share count rose 3.4% over five years; stock-based pay has been a median 1.0% 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 (51 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 Resources Connection, 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 Resources Connection, Inc.