Varex Imaging Corp key statistics and ratios

In fiscal 2025, Varex Imaging Corp had return on equity of -14.0%, an operating margin of -3.3%, debt equal to 78.3% of equity and a current ratio of 3.43. 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.

Varex Imaging Corp: financial ratios, annual
Fiscal year	2015Oct 2015	2016Sept 2016	2017Sept 2017	2018Sept 2018	2019Sept 2019	2020Oct 2020	2021Oct 2021	2022Sept 2022	2023Sept 2023	2024Sept 2024	2025Oct 2025	LTMJul 2026
Gross margin	39.6%	40.1%	36.3%	32.8%	32.9%	25.8%	33.2%	33.0%	32.5%	31.7%	34.4%	34.3%
Operating margin	20.2%	17.6%	12.0%	5.8%	5.9%	−4.6%	9.1%	10.3%	8.6%	4.0%	−3.3%	8.3%
Net margin	12.7%	11.0%	7.4%	3.6%	2.0%	−7.8%	2.1%	3.5%	5.3%	−6.0%	−8.3%	2.6%
Free-cash-flow margin	8.1%	7.3%	7.9%	8.4%	6.7%	−1.4%	9.5%	−0.5%	9.8%	2.5%	2.2%	−2.3%
Return on equity	16.1%	13.4%	11.4%	6.8%	3.6%	−12.9%	3.7%	6.0%	8.6%	−8.9%	−14.0%	4.6%
Return on assets	—	11.0%	6.2%	2.7%	1.5%	−5.3%	1.5%	2.6%	3.9%	−4.0%	−6.1%	2.0%
Asset turnover	—	1.00	0.84	0.76	0.77	0.68	0.72	0.74	0.73	0.66	0.73	0.78
Current ratio	—	4.63	3.26	3.01	2.50	3.25	3.33	3.52	4.04	3.32	3.43	3.38
Debt to equity	0.0%	0.0%	130.3%	93.4%	90.1%	113.2%	99.4%	84.3%	78.9%	84.4%	78.3%	69.9%
Interest cover (operating income ÷ interest)	106.3x	57.4x	6.8x	2.1x	2.2x	n/m	1.8x	2.2x	2.6x	1.1x	n/m	1.9x
Effective tax rate	36.7%	34.3%	30.5%	−10.1%	26.5%	—	37.4%	30.8%	—	—	—	18.8%
R&D as % of revenue	8.0%	8.6%	9.6%	10.7%	10.0%	10.7%	8.8%	9.0%	9.5%	10.7%	10.8%	10.6%
SG&A as % of revenue	11.5%	13.8%	14.7%	16.0%	16.4%	19.3%	15.3%	13.8%	14.4%	17.0%	15.8%	15.4%
Capital spending as % of revenue	5.4%	4.7%	2.9%	2.6%	2.5%	3.2%	1.8%	2.5%	2.3%	3.3%	2.7%	3.6%
Free cash flow ÷ net income	63.6%	66.1%	106.6%	236.0%	336.1%	—	445.4%	−14.5%	185.0%	—	—	−91.4%

US$ thousands unless shown otherwise. Fiscal quarters.

Varex Imaging Corp: financial ratios, quarterly
Quarter	2024 Q4Sept 2024	2025 Q1Jan 2025	2025 Q2Apr 2025	2025 Q3Jul 2025	2025 Q4Oct 2025	2026 Q1Jan 2026	2026 Q2Apr 2026	2026 Q3Jul 2026
Gross margin	32.6%	34.3%	36.0%	33.3%	34.0%	33.3%	33.6%	36.4%
Operating margin	5.3%	5.6%	10.4%	−39.8%	8.6%	7.3%	6.7%	10.8%
Net margin	−24.8%	−0.2%	3.2%	−43.9%	5.3%	1.1%	−3.8%	7.5%
Free-cash-flow margin	9.7%	2.7%	4.6%	0.7%	1.0%	−12.8%	−3.6%	5.7%
Current ratio	3.32	4.36	4.05	3.51	3.43	3.89	3.20	3.38
Debt to equity	83.8%	105.0%	103.2%	80.7%	77.8%	77.1%	73.3%	69.9%
R&D as % of revenue	10.6%	11.8%	10.3%	10.5%	10.6%	10.4%	10.3%	11.1%
SG&A as % of revenue	16.7%	16.9%	15.3%	16.2%	14.9%	15.6%	16.7%	14.5%

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 7 checks passed · July 3, 2026

What it owns · $1.1bn

Short-term assets $633mLonger-term assets $467m

What it owes, and who funded it · $1.1bn

Short-term liabilities $187mLonger-term liabilities $402mShareholders' equity $497m

Short-term assets cover short-term liabilities $633m of assets due within a year against $187m of liabilities due within a year.
Short-term assets cover long-term liabilities $633m short-term assets against $402m of longer-dated liabilities.
More cash than debt $99m of cash against $347m of debt.
Debt below 40% of shareholders' equity Debt is 70% of equity.
Debt burden no higher than five years ago Debt to equity moved from 88% to 70% over five years.
A year's operating cash flow covers at least 20% of debt $11m of operating cash flow against $347m of debt.
Operating profit covers interest at least five times over Operating income of $72m against $39m of interest.

From Varex Imaging Corp'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

52 /100

Moderate moat

How hard Varex Imaging'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 13 / 20

Cash operating profit has been a median 10.4% of total assets over 9 years.
Pricing power 11 / 20

Gross margin has been a median 32.7%, moving by 2.4 percentage points (standard deviation) across 10 years.
Durability 1 / 20

Operating margin has been a median 6.9%; its worst year was -4.4%.
Cash conversion 11 / 20

Free cash flow was positive in 9 of 10 years, at a median 4.7% of revenue.
Discipline 16 / 20

The diluted share count rose 2.1% 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 Varex Imaging Corp'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 Varex Imaging Corp.