Latham Group, Inc. key statistics and ratios

In fiscal 2025, Latham Group, Inc. had return on equity of 2.8%, an operating margin of 5.6%, debt equal to 70.2% of equity and a current ratio of 2.77. 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.

Latham 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	30.9%	35.4%	32.4%	31.1%	27.0%	30.2%	33.4%	33.4%
Operating margin	7.9%	9.9%	−5.7%	4.3%	2.8%	3.6%	5.6%	5.1%
Net margin	2.3%	4.0%	−9.9%	−0.8%	−0.4%	−3.5%	2.0%	0.9%
Free-cash-flow margin	8.6%	11.6%	1.4%	−1.1%	14.7%	8.1%	7.0%	8.5%
Return on equity	3.8%	6.7%	−19.6%	−1.5%	−0.6%	−4.5%	2.8%	1.3%
Return on assets	—	2.5%	−8.7%	−0.7%	−0.3%	−2.2%	1.4%	0.6%
Asset turnover	—	0.62	0.87	0.84	0.66	0.62	0.68	0.69
Current ratio	—	1.78	1.99	2.94	2.77	2.51	2.77	2.16
Debt to equity	0.0%	78.7%	80.3%	84.3%	77.5%	74.4%	70.2%	69.0%
Interest cover (operating income ÷ interest)	—	2.2x	n/m	1.9x	0.5x	0.7x	1.2x	1.3x
Effective tax rate	—	29.8%	—	—	—	—	17.5%	46.5%
SG&A as % of revenue	18.0%	21.2%	34.5%	21.1%	19.5%	21.3%	22.5%	23.3%
Capital spending as % of revenue	2.6%	4.0%	4.0%	5.7%	5.9%	4.0%	4.7%	5.4%
Free cash flow ÷ net income	368.6%	293.4%	—	—	—	—	342.0%	920.5%
Dividends ÷ net income	—	41.4%	—	—	—	—	—	—
Dividends and buybacks ÷ free cash flow	0.7%	15.4%	>999%	—	0.0%	0.0%	—	—

US$ thousands unless shown otherwise. Fiscal quarters.

Latham 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	32.4%	24.6%	29.5%	37.1%	35.4%	28.0%	31.7%	35.5%
Operating margin	8.9%	−14.9%	−4.4%	14.3%	13.3%	−10.7%	−5.6%	12.7%
Net margin	3.9%	−33.4%	−5.4%	9.3%	5.0%	−7.0%	−7.3%	6.5%
Free-cash-flow margin	22.1%	−0.1%	−45.2%	16.8%	27.9%	14.1%	−49.6%	24.3%
Current ratio	2.44	2.51	2.55	2.39	2.43	2.77	1.88	2.16
Debt to equity	67.9%	72.7%	80.5%	70.7%	68.8%	69.0%	70.6%	68.0%
SG&A as % of revenue	18.8%	31.2%	27.5%	18.5%	17.7%	31.4%	31.2%	19.1%

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 7 checks passed · June 27, 2026

What it owns · $860m

Short-term assets $241mLonger-term assets $620m

What it owes, and who funded it · $860m

Short-term liabilities $112mLonger-term liabilities $337mShareholders' equity $411m

Short-term assets cover short-term liabilities $241m of assets due within a year against $112m of liabilities due within a year.
Short-term assets cover long-term liabilities $241m short-term assets against $337m of longer-dated liabilities.
More cash than debt $43m of cash against $280m of debt.
Debt below 40% of shareholders' equity Debt is 68% of equity.
Debt burden no higher than five years ago Debt to equity moved from 74% to 68% over five years.
A year's operating cash flow covers at least 20% of debt $80m of operating cash flow against $280m of debt.
Operating profit covers interest at least five times over Operating income of $29m against $23m of interest.

From Latham 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

30 /100

Weak moat

How hard Latham 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 0 / 20

Net income has been a median -1.7% of total assets over 6 years.
Pricing power 11 / 20

Gross margin has been a median 32.6%, moving by 2.9 percentage points (standard deviation) across 6 years.
Durability 1 / 20

Operating margin has been a median 2.9%; its worst year was 0.3%.
Cash conversion 12 / 20

Free cash flow was positive in 5 of 6 years, at a median 6.9% of revenue.
Discipline 11 / 20

The diluted share count rose 10.6% over five years; stock-based pay has been a median 3.4% 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 (36 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 Latham 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 Latham Group, Inc.