Rocky Mountain Chocolate Factory, Inc. key statistics and ratios

In fiscal 2026, Rocky Mountain Chocolate Factory, Inc. had return on equity of -74.7%, an operating margin of -13.0%, debt equal to 125.6% of equity and a current ratio of 1.33. 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.

Rocky Mountain Chocolate Factory, Inc.: financial ratios, annual
Fiscal year	2013Feb 2013	2014Feb 2014	2015Feb 2015	2016Feb 2016	2017Feb 2017	2018Feb 2018	2019Feb 2019	2020Feb 2020	2021Feb 2021	2022Feb 2022	2023Feb 2023	2024Feb 2024	2025Feb 2025	2026Feb 2026	LTMAug 2026
Gross margin	47.8%	30.7%	28.6%	25.9%	23.9%	23.6%	20.2%	20.4%	13.0%	16.7%	13.1%	26.1%	19.1%	24.9%	23.8%
Operating margin	7.0%	13.4%	14.4%	9.2%	14.4%	13.7%	8.7%	4.4%	−11.6%	−2.4%	−16.1%	−17.5%	−20.1%	−13.0%	−18.7%
Net margin	4.1%	11.2%	9.5%	10.9%	9.0%	7.8%	6.5%	3.2%	−3.8%	−1.2%	−18.7%	−14.9%	−20.7%	−16.6%	−22.3%
Free-cash-flow margin	15.5%	8.0%	12.6%	14.9%	10.7%	11.1%	9.8%	10.9%	−0.3%	6.5%	−10.2%	−19.5%	−35.0%	−8.7%	−10.2%
Return on equity	8.5%	23.6%	19.9%	23.2%	18.5%	15.1%	11.0%	5.2%	−4.7%	−1.8%	−33.6%	−33.4%	−69.5%	−74.7%	−145.9%
Return on assets	6.2%	14.9%	11.4%	13.7%	11.6%	10.2%	8.2%	3.8%	−3.4%	−1.3%	−23.2%	−19.6%	−29.3%	−22.0%	−30.9%
Asset turnover	1.52	1.33	1.20	1.26	1.28	1.31	1.26	1.18	0.89	1.14	1.25	1.31	1.42	1.33	1.39
Current ratio	—	2.12	2.13	1.93	1.88	2.68	3.01	2.43	3.38	2.82	2.24	1.19	1.34	1.33	0.52
Debt to equity	0.0%	32.2%	31.9%	27.5%	20.4%	12.3%	6.4%	0.0%	20.8%	0.0%	0.0%	11.8%	0.0%	125.6%	234.5%
Interest cover (operating income ÷ interest)	—	106.1x	24.5x	17.1x	32.4x	43.1x	42.5x	73.2x	n/m	—	n/m	n/m	n/m	n/m	n/m
Effective tax rate	47.7%	40.7%	35.3%	−7.4%	36.1%	42.2%	24.3%	26.3%	—	—	—	—	—	—	—
Capital spending as % of revenue	2.0%	6.4%	1.5%	1.8%	3.2%	1.4%	1.8%	3.1%	0.6%	3.2%	3.3%	10.8%	12.7%	2.1%	2.2%
Free cash flow ÷ net income	379.9%	71.6%	133.2%	136.6%	118.3%	142.1%	151.9%	335.5%	—	—	—	—	—	—	—
Dividends ÷ net income	177.4%	61.1%	68.9%	64.1%	81.3%	95.2%	127.1%	277.6%	—	—	—	—	—	—	—
Dividends and buybacks ÷ free cash flow	77.2%	85.3%	111.3%	97.1%	77.3%	67.0%	83.6%	84.4%	—	15.6%	—	—	—	—	—

US$ thousands unless shown otherwise. Fiscal quarters.

Rocky Mountain Chocolate Factory, Inc.: financial ratios, quarterly
Quarter	2025 Q3Nov 2024	2025 Q4Feb 2025	2026 Q1May 2025	2026 Q2Aug 2025	2026 Q3Nov 2025	2026 Q4Feb 2026	2027 Q1May 2026	2027 Q2Aug 2026
Gross margin	23.4%	10.8%	31.1%	23.6%	34.0%	10.4%	23.1%	26.5%
Operating margin	−8.9%	−30.3%	−2.3%	−7.0%	1.1%	−45.1%	−16.5%	−16.3%
Net margin	−10.7%	−32.5%	−5.1%	−9.7%	−2.1%	−50.6%	−19.1%	−19.3%
Free-cash-flow margin	−34.6%	−4.7%	2.9%	−8.0%	−16.9%	−10.9%	−9.9%	−2.1%
Current ratio	2.60	1.34	1.36	1.53	1.66	1.33	1.13	0.52
Debt to equity	—	—	—	—	—	125.6%	—	10.4%

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 6 checks passed · August 31, 2026

What it owns · $19m

Short-term assets $7mLonger-term assets $12m

What it owes, and who funded it · $19m

Short-term liabilities $14mLonger-term liabilities $2mShareholders' equity $3m

Short-term assets cover short-term liabilities $7m of assets due within a year against $14m of liabilities due within a year.
Short-term assets cover long-term liabilities $7m short-term assets against $2m of longer-dated liabilities.
More cash than debt $416,000 of cash against $316,000 of debt.
Debt below 40% of shareholders' equity Debt is 10% of equity.
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 −$2m of operating cash flow against $316,000 of debt.
Operating profit covers interest at least five times over Operating income of −$5m against $881,000 of interest.

From Rocky Mountain Chocolate Factory, 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

33 /100

Weak moat

How hard Rocky Mountain Chocolate Factory'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 3 / 20

Cash operating profit has been a median 3.8% of total assets over 10 years.
Pricing power 7 / 20

Gross margin has been a median 22.1%, moving by 4.2 percentage points (standard deviation) across 10 years.
Durability 10 / 20

Operating margin has been a median -14.2%; its worst year was -22.9%.
Cash conversion 4 / 20

Free cash flow was positive in 4 of 10 years, at a median -6.1% of revenue.
Discipline 10 / 20

The diluted share count rose 45.5% over five years; stock-based pay has been a median 1.7% of revenue.

AI disruption exposure: Low. In this industry, the business rests on physical assets, regulated networks or products AI itself depends on.

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 Rocky Mountain Chocolate Factory, 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 Rocky Mountain Chocolate Factory, Inc.