Advanced Drainage Systems, Inc. key statistics and ratios

In fiscal 2026, Advanced Drainage Systems, Inc. had return on equity of 25.2%, an operating margin of 20.3%, debt equal to 87.7% of equity and a current ratio of 2.42. 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.

Advanced Drainage Systems, Inc.: financial ratios, annual
Fiscal year	2013Mar 2013	2014Mar 2014	2015Mar 2015	2016Mar 2016	2017Mar 2017	2018Mar 2018	2019Mar 2019	2020Mar 2020	2021Mar 2021	2022Mar 2022	2023Mar 2023	2024Mar 2024	2025Mar 2025	2026Mar 2026	LTMJun 2026
Gross margin	18.5%	18.0%	17.4%	22.1%	23.5%	22.7%	23.6%	18.9%	34.8%	28.9%	36.4%	39.9%	37.7%	38.3%	38.6%
Operating margin	5.7%	4.5%	3.3%	7.3%	6.1%	6.6%	9.3%	−5.7%	17.4%	14.9%	23.4%	25.5%	22.6%	20.3%	20.7%
Net margin	2.0%	0.4%	−0.7%	1.9%	4.9%	4.7%	5.6%	−11.5%	11.3%	9.8%	16.5%	17.7%	15.5%	14.0%	14.0%
Free-cash-flow margin	3.6%	2.9%	3.6%	7.0%	4.6%	7.2%	7.8%	14.2%	18.8%	4.5%	17.6%	18.6%	12.7%	18.7%	17.1%
Return on equity	—	—	—	14.4%	30.2%	23.4%	22.5%	−42.5%	33.3%	31.7%	59.1%	51.6%	33.6%	25.2%	24.7%
Return on assets	2.2%	0.5%	−0.8%	2.4%	6.0%	5.9%	7.5%	−11.3%	9.4%	10.7%	18.3%	16.5%	12.9%	10.4%	10.0%
Asset turnover	1.07	1.10	1.17	1.24	1.21	1.27	1.33	0.98	0.83	1.09	1.11	0.93	0.83	0.74	0.71
Current ratio	—	2.30	2.06	1.74	1.72	2.07	2.26	2.80	2.33	2.23	2.69	2.96	3.33	2.42	2.12
Debt to equity	—	—	248.8%	187.4%	157.3%	97.8%	61.6%	209.2%	96.5%	104.1%	157.2%	111.1%	83.2%	87.7%	91.0%
Effective tax rate	41.0%	64.0%	—	39.6%	38.0%	14.8%	26.9%	—	27.7%	28.7%	22.9%	23.8%	23.9%	24.1%	23.7%
SG&A as % of revenue	—	—	—	—	—	—	13.4%	16.2%	13.5%	—	—	—	—	—	—
Capital spending as % of revenue	3.8%	3.8%	2.7%	3.5%	3.7%	3.1%	3.1%	4.0%	4.0%	5.4%	5.4%	6.4%	7.3%	8.2%	7.9%
Free cash flow ÷ net income	177.1%	718.5%	—	360.8%	92.8%	153.9%	139.2%	—	166.6%	46.4%	106.7%	104.7%	81.9%	133.5%	122.0%
Dividends ÷ net income	29.8%	>999%	—	64.8%	27.1%	29.8%	33.6%	—	14.3%	13.6%	7.8%	8.6%	11.0%	13.2%	12.7%
Dividends and buybacks ÷ free cash flow	17.5%	368.9%	18.6%	18.0%	29.2%	27.7%	24.2%	38.6%	8.6%	261.5%	113.6%	47.1%	32.5%	26.0%	69.6%

US$ thousands unless shown otherwise. Fiscal quarters.

Advanced Drainage Systems, Inc.: financial ratios, quarterly
Quarter	2025 Q2Sept 2024	2025 Q3Dec 2024	2025 Q4Mar 2025	2026 Q1Jun 2025	2026 Q2Sept 2025	2026 Q3Dec 2025	2026 Q4Mar 2026	2027 Q1Jun 2026
Gross margin	37.6%	35.0%	36.7%	39.8%	40.0%	37.4%	35.1%	40.8%
Operating margin	23.9%	18.4%	19.0%	24.8%	26.3%	19.7%	7.9%	25.4%
Net margin	16.7%	11.8%	12.5%	17.3%	18.3%	13.5%	4.9%	16.8%
Free-cash-flow margin	14.4%	19.7%	−0.9%	26.8%	20.7%	26.5%	−1.9%	20.3%
Current ratio	3.19	3.21	3.33	3.22	3.48	4.12	2.42	2.12
Debt to equity	92.0%	87.1%	82.7%	75.4%	68.8%	66.5%	86.7%	90.0%

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 · June 30, 2026

What it owns · $4.5bn

Short-term assets $1.2bnLonger-term assets $3.3bn

What it owes, and who funded it · $4.4bn

Short-term liabilities $586mLonger-term liabilities $2.0bnShareholders' equity $1.8bn

Short-term assets cover short-term liabilities $1.2bn of assets due within a year against $586m of liabilities due within a year.
Short-term assets cover long-term liabilities $1.2bn short-term assets against $2.0bn of longer-dated liabilities.
More cash than debt $162m of cash against $1.6bn of debt.
Debt below 40% of shareholders' equity Debt is 90% of equity.
Debt burden no higher than five years ago Debt to equity moved from 117% to 90% over five years.
A year's operating cash flow covers at least 20% of debt $804m of operating cash flow against $1.6bn of debt.
Operating profit covers interest at least five times over Interest not separately reported. Not assessable.

From Advanced Drainage Systems, 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

49 /100

Moderate moat

How hard Advanced Drainage Systems'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 9.9% of total assets over 6 years.
Pricing power 5 / 20

Gross margin has been a median 32.4%, moving by 8.5 percentage points (standard deviation) across 10 years.
Durability 5 / 20

Operating margin has been a median 17.3%; its worst year was -8.6%.
Cash conversion 18 / 20

Free cash flow was positive in 10 of 10 years, at a median 15.5% of revenue.
Discipline 14 / 20

The diluted share count rose 8.0% over five years; stock-based pay has been a median 1.1% 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 (54 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 Advanced Drainage Systems, Inc.'s SEC filings (10-K and 10-Q), retrieved October 20, 2026. How we read and check them: methodology and data sources. Not investment advice. Back to Advanced Drainage Systems, Inc.