Shoals Technologies Group, Inc. key statistics and ratios

In fiscal 2025, Shoals Technologies Group, Inc. had return on equity of 5.8%, an operating margin of 11.9%, debt equal to 22.8% of equity and a current ratio of 2.03. 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.

Shoals Technologies Group, Inc.: financial ratios, annual
Fiscal year	2019Dec 2019	2020Dec 2020	2021Dec 2021	2022Dec 2022	2023Dec 2023	2024Dec 2024	2025Dec 2025	LTMJun 2026
Gross margin	30.6%	37.9%	38.8%	40.2%	34.4%	35.6%	35.0%	31.9%
Operating margin	18.6%	21.2%	17.0%	20.3%	16.2%	12.8%	11.9%	10.6%
Net margin	17.4%	19.2%	1.1%	39.0%	8.2%	6.0%	7.1%	5.4%
Free-cash-flow margin	23.9%	29.0%	−3.9%	11.1%	16.6%	18.0%	−3.4%	−8.8%
Return on equity	16.8%	—	—	86.8%	9.6%	4.4%	5.8%	5.2%
Return on assets	—	17.3%	0.8%	25.0%	5.6%	2.9%	4.0%	3.3%
Asset turnover	—	0.90	0.69	0.64	0.68	0.49	0.56	0.61
Current ratio	—	2.33	2.96	2.92	2.45	2.33	2.03	2.25
Debt to equity	0.0%	—	>999%	83.5%	33.7%	25.5%	22.8%	31.9%
Interest cover (operating income ÷ interest)	15.1x	10.6x	2.5x	3.6x	3.3x	3.7x	5.6x	5.3x
Effective tax rate	—	—	2.1%	5.9%	22.3%	36.3%	30.8%	—
Capital spending as % of revenue	1.2%	1.8%	1.9%	1.0%	2.2%	2.1%	7.0%	5.5%
Free cash flow ÷ net income	137.1%	150.6%	−349.6%	28.4%	203.6%	298.4%	−47.6%	−162.0%
Dividends and buybacks ÷ free cash flow	—	—	—	0.0%	0.0%	35.2%	—	—

US$ thousands unless shown otherwise. Fiscal quarters.

Shoals Technologies Group, Inc.: financial ratios, quarterly
Quarter	2024 Q3Sept 2024	2024 Q4Dec 2024	2025 Q1Mar 2025	2025 Q2Jun 2025	2025 Q3Sept 2025	2025 Q4Dec 2025	2026 Q1Mar 2026	2026 Q2Jun 2026
Gross margin	24.8%	37.6%	35.0%	37.2%	37.0%	31.6%	29.2%	30.3%
Operating margin	4.4%	15.4%	5.4%	14.4%	13.7%	11.7%	5.5%	11.5%
Net margin	−0.3%	7.3%	−0.4%	12.5%	8.7%	5.5%	−0.2%	7.4%
Free-cash-flow margin	13.0%	11.6%	15.4%	−23.5%	6.6%	−7.6%	−34.9%	−0.1%
Current ratio	2.08	2.33	2.34	2.34	2.19	2.03	1.84	2.25
Debt to equity	26.0%	25.5%	25.4%	22.9%	21.5%	—	—	—

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 · June 30, 2026

What it owns · $1.0bn

Short-term assets $369mLonger-term assets $647m

What it owes, and who funded it · $1.0bn

Short-term liabilities $164mLonger-term liabilities $235mShareholders' equity $617m

Short-term assets cover short-term liabilities $369m of assets due within a year against $164m of liabilities due within a year.
Short-term assets cover long-term liabilities $369m short-term assets against $235m 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 $63m against $12m of interest.

From Shoals Technologies 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

44 /100

Weak moat

How hard Shoals Technologies Group's competitive advantage looks for rivals to wear away, judged from 6 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.

Returns on capital 2 / 20

Net income has been a median 3.0% of total assets over 6 years.
Pricing power 10 / 20

Gross margin has been a median 35.4%, moving by 4.2 percentage points (standard deviation) across 6 years.
Durability 13 / 20

Operating margin has been a median 12.7%; its worst year was 10.3%.
Cash conversion 10 / 20

Free cash flow was positive in 4 of 6 years, at a median 5.9% 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 Shoals Technologies Group, 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 Shoals Technologies Group, Inc.