The company's financial position has deteriorated significantly, with the debt-to-equity ratio rising to 1.51 as retained earnings shifted to a $9.9 million deficit.
| Metric | Feb'26 | Feb'25 | Feb'24 | Feb'23 | Feb'22 | Feb'21 | Feb'20 | Feb'19 | Feb'18 | Feb'17 | Feb'16 | Feb'15 | Feb'14 | Feb'13 | Feb'12 | Feb'11 | Feb'10 | Feb'09 | Feb'08 | Feb'07 | Feb'06 | Feb'05 | Feb'04 | Feb'03 | Feb'02 | Feb'01 | Feb'00 | Feb'99 | Feb'98 | Feb'97 |
|---|
| Total Current Assets | 8.77M | 9.22M | 9.6M | 11.2M | 15M | 12.78M | 13.61M | 14.27M | 15.57M | 15.15M | 15.44M | 17.66M | 16.84M | 14.54M | 14.1M | 13.51M | 12.22M | 10.14M | 8.96M | 10.76M | 10.44M | 11.12M | 10.23M | 7.65M | 7.03M | 5.61M | 5.76M | 6.4M | 7.4M | 5.7M |
| Cash & Short-Term Investments | 1.22M | 720K | 2.08M | 4.72M | 7.59M | 5.63M | 4.82M | 5.38M | 6.07M | 5.78M | 6.19M | 7.16M | 5.86M | 5.32M | 4.13M | 3.34M | 3.74M | 1.25M | 675.64K | 2.83M | 3.49M | 4.44M | 4.55M | 1.28M | 165.47K | 87.3K | 128.19K | 300K | 1.8M | 800K |
| Cash Only | 1.22M | 720K | 2.08M | 4.72M | 7.59M | 5.63M | 4.82M | 5.38M | 6.07M | 5.78M | 6.19M | 7.16M | 5.86M | 5.32M | 4.13M | 3.34M | 3.74M | 1.25M | 675.64K | 2.83M | 3.49M | 4.44M | 4.55M | 1.28M | 165.47K | 87.3K | 128.19K | 300K | 1.8M | 800K |
| Short-Term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Accounts Receivable | 2.66M | 3.48M | 2.72M | 2.42M | 2.65M | 2.87M | 4.63M | 4.29M | 4.35M | 4.14M | 4.12M | 4.82M | 5.87M | 4.11M | 5.09M | 5.31M | 4.52M | 4.23M | 3.89M | 3.81M | 3.41M | 3.76M | 2.7M | 2.31M | 3.29M | 2.3M | 2.19M | 1.9M | 2.2M | 1.7M |
| Days Sales Outstanding | 35.34 | 42.94 | 35.5 | 29.08 | 32.81 | 48.08 | 53.05 | 45.37 | 41.66 | 39.45 | 37.14 | 42.42 | 54.64 | 41.34 | 53.61 | 62.31 | 58 | 54.1 | 44.51 | 44.01 | 44.38 | 55.97 | 46.67 | 43.31 | 61.71 | 37.15 | 32.5 | 26.47 | 33.74 | 27.83 |
| Inventory | 4.06M | 4.63M | 4.36M | 3.64M | 4.3M | 4.06M | 3.75M | 4.27M | 4.84M | 4.98M | 4.84M | 4.79M | 4.41M | 4.22M | 4.12M | 4.12M | 3.28M | 4.06M | 4.02M | 3.48M | 2.94M | 2.52M | 2.47M | 3.06M | 3.13M | 2.8M | 3.08M | 3.3M | 2.6M | 2.3M |
| Days Inventory Outstanding | 59.95 | 64.18 | 68.45 | 59.63 | 76.43 | 86.01 | 68.12 | 69.03 | 75.94 | 79.64 | 75.76 | 76.36 | 74.27 | 73.24 | 74.78 | 84.55 | 72.99 | 88.33 | 80.63 | 72.38 | 69.54 | 69.88 | 77.3 | 99.42 | 104.72 | 90.34 | 92.19 | 94.1 | 87.87 | 77.02 |
| Other Current Assets | 831K | 393K | 443K | 423.85K | 461.67K | 213.81K | 409.7K | 318.13K | 310.17K | 256.55K | 286.86K | 891.23K | 855.25K | 887.8K | 768.56K | 724.53K | 681.41K | 593.58K | 385.03K | 640.29K | 598.81K | 407.51K | 503.04K | 999.11K | 452.53K | 422.19K | 353.47K | 900K | 800K | 900K |
| Total Non-Current Assets | 11.44M | 11.95M | 10.97M | 10.78M | 11.88M | 12.17M | 14.21M | 11.96M | 13.37M | 14.27M | 14.88M | 16.48M | 18.31M | 9.29M | 10.06M | 7.93M | 6.7M | 6.7M | 7.18M | 7.7M | 8.62M | 8.12M | 7.74M | 8.43M | 9.76M | 9.44M | 10.68M | 12.25M | 12.5M | 12.9M |
| Property, Plant & Equipment | 10.09M | 10.65M | 9.45M | 8.07M | 7.22M | 7.08M | 8.64M | 5.79M | 6.17M | 6.46M | 6.01M | 6.8M | 8.49M | 6.78M | 8.52M | 6.28M | 5.19M | 5.25M | 5.67M | 5.75M | 6.7M | 6.13M | 5.46M | 5.62M | 5.98M | 6.82M | 8.98M | 10.2M | 9.7M | 11.8M |
| Fixed Asset Turnover | 2.73x | 2.78x | 2.96x | 3.77x | 4.08x | 3.07x | 3.69x | 5.97x | 6.17x | 5.93x | 6.73x | 6.11x | 4.62x | 5.36x | 4.07x | 4.96x | 5.48x | 5.43x | 5.63x | 5.49x | 4.19x | 4.00x | 3.87x | 3.46x | 3.25x | 3.31x | 2.75x | 2.57x | 2.45x | 1.89x |
| Goodwill | 576K | 576K | 576K | 575.61K | 729.7K | 729.7K | 1.05M | 1.05M | 1.05M | 1.05M | 1.05M | 2.98M | 3.06M | 1.05M | 1.05M | 1.05M | 1.05M | 1.05M | 939.07K | 939.07K | 1.13M | 1.13M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Intangible Assets | 733K | 210K | 238K | 265.93K | 294.83K | 2.92M | 3.55M | 4.18M | 5.02M | 5.46M | 5.57M | 5.88M | 6.08M | 800.63K | 22.11K | 59.22K | 110.03K | 183.13K | 276.25K | 349.36K | 402.47K | 426.83K | 1.63M | 1.6M | 797.79K | 915.4K | 1.28M | 1.4M | 600K | 300K |
| Long-Term Investments | 36K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Current Assets | 14K | 516K | 709K | 1.87M | 2.91M | 306.55K | 345.78K | 338.25K | 299.32K | 445.41K | 825.56K | 825.43K | 677.72K | 665.29K | 478.9K | 550.25K | 351.7K | 215.51K | 303.94K | 654.2K | 382.18K | 436.51K | 648.74K | 1.22M | 2.98M | 1.7M | 425.86K | 652.1K | 2.2M | 800K |
| Total Assets | 20.21M | 21.18M | 20.58M | 21.99M | 26.88M | 24.95M | 27.82M | 26.22M | 28.94M | 29.42M | 30.32M | 34.14M | 35.15M | 23.83M | 24.16M | 21.44M | 18.92M | 16.84M | 16.15M | 18.46M | 19.06M | 19.25M | 17.97M | 16.08M | 16.8M | 15.04M | 16.44M | 18.65M | 19.9M | 18.6M |
| Asset Turnover | 1.36x | 1.40x | 1.36x | 1.38x | 1.10x | 0.87x | 1.14x | 1.32x | 1.32x | 1.30x | 1.33x | 1.22x | 1.11x | 1.52x | 1.43x | 1.45x | 1.50x | 1.69x | 1.97x | 1.71x | 1.47x | 1.27x | 1.18x | 1.21x | 1.16x | 1.50x | 1.50x | 1.40x | 1.20x | 1.20x |
| Asset Growth % | -4.55% | 2.91% | -6.41% | -18.21% | 7.73% | -10.3% | 6.08% | -9.39% | -1.62% | -2.96% | -11.2% | -2.89% | 47.49% | -1.36% | 12.71% | 13.31% | 12.34% | 4.3% | -12.51% | -3.16% | -0.99% | 7.13% | 11.71% | -4.23% | 11.66% | -8.5% | -11.86% | -6.27% | 6.99% | 14.11% |
| Total Current Liabilities | 6.79M | 6.87M | 8.07M | 5.01M | 5.31M | 3.78M | 5.61M | 4.74M | 8.21M | 8.06M | 8.01M | 8.29M | 7.96M | 5.56M | 3.54M | 3.68M | 3.29M | 2.77M | 3.81M | 3.26M | 2.91M | 3.12M | 3.84M | 2.87M | 3.09M | 4.36M | 4.17M | 4.8M | 3.5M | 3.1M |
| Accounts Payable | 5.09M | 4.82M | 3.41M | 2.19M | 1.5M | 1.3M | 2.24M | 897.07K | 1.65M | 1.82M | 1.66M | 1.68M | 1.97M | 2M | 1.36M | 1.54M | 877.83K | 1.07M | 1.71M | 898.79K | 1.15M | 1.09M | 952.54K | 612.77K | 667.42K | 1.07M | 1.06M | 1.1M | 1.3M | 800K |
| Days Payables Outstanding | 75.19 | 66.76 | 53.58 | 35.87 | 26.6 | 27.46 | 40.71 | 14.5 | 25.84 | 29.14 | 26.03 | 26.74 | 33.2 | 34.68 | 24.61 | 31.59 | 19.53 | 23.35 | 34.34 | 18.68 | 27.11 | 30.21 | 29.79 | 19.89 | 22.35 | 34.37 | 31.56 | 31.37 | 43.94 | 26.79 |
| Short-Term Debt | 282K | 0 | 1.25M | 0 | 0 | 0 | 0 | 1.18M | 1.35M | 1.3M | 1.25M | 1.21M | 108.02K | 0 | 0 | 0 | 0 | 0 | 300K | 0 | 0 | 126K | 1.08M | 1.22M | 1.19M | 2.11M | 2.01M | 2.7M | 1.1M | 800K |
| Deferred Revenue (Current) | 0 | 788K | 775K | 754.07K | 746.21K | 812.17K | 805.5K | 998.38K | 3.53M | 3.37M | 3.34M | 3.52M | 1.8M | 417.48K | 156K | 261.41K | 220.94K | 142K | 303K | 288.5K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Current Liabilities | 1.23M | 0 | 0 | 178.94K | 173.24K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 599.47K | 551.73K | 504.15K | 417.09K | 236.11K | 0 | 0 | 0 | 1.11M | 1M | 1.1M | 1.5M |
| Current Ratio | 1.29x | 1.34x | 1.19x | 2.24x | 2.82x | 3.38x | 2.43x | 3.01x | 1.90x | 1.88x | 1.93x | 2.13x | 2.12x | 2.61x | 3.98x | 3.67x | 3.71x | 3.66x | 2.35x | 3.30x | 3.59x | 3.57x | 2.67x | 2.66x | 2.27x | 1.29x | 1.38x | 1.33x | 2.11x | 1.84x |
| Quick Ratio | 0.69x | 0.67x | 0.65x | 1.51x | 2.01x | 2.31x | 1.76x | 2.11x | 1.31x | 1.26x | 1.32x | 1.55x | 1.56x | 1.86x | 2.82x | 2.55x | 2.71x | 2.19x | 1.30x | 2.24x | 2.58x | 2.76x | 2.02x | 1.60x | 1.26x | 0.64x | 0.64x | 0.65x | 1.37x | 1.10x |
| Cash Conversion Cycle | 20.1 | 40.36 | 50.38 | 52.83 | 82.64 | 106.63 | 80.46 | 99.89 | 91.76 | 89.96 | 86.87 | 92.04 | 95.71 | 79.9 | 103.78 | 115.27 | 111.46 | 119.07 | 90.79 | 97.71 | 86.81 | 95.64 | 94.18 | 122.84 | 144.08 | 93.12 | 93.12 | 89.2 | 77.67 | 78.05 |
| Total Non-Current Liabilities | 8.2M | 7.33M | 1.87M | 2.61M | 2.17M | 2.2M | 2.86M | 1.1M | 1.18M | 2.53M | 3.83M | 6.11M | 7.34M | 881.69K | 1.88M | 1.11M | 894.43K | 827.7K | 681.53K | 685.61K | 663.89K | 2.24M | 2.54M | 3.32M | 4.88M | 3.62M | 3.84M | 5.35M | 6.4M | 5.7M |
| Long-Term Debt | 6.57M | 5.96M | 0 | 0 | 0 | 0 | 0 | 0 | 1.18M | 2.53M | 3.83M | 5.08M | 6.29M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.54M | 1.99M | 3.07M | 4.32M | 3.3M | 3.77M | 5.3M | 6M | 5.7M |
| Capital Lease Obligations | 1.05M | 770K | 1.19M | 1.64M | 1.22M | 1.28M | 1.89M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Tax Liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.03M | 1.05M | 881.69K | 1.88M | 1.11M | 894.43K | 827.7K | 681.53K | 685.61K | 663.89K | 698.6K | 555.57K | 232.22K | 168.46K | 131.99K | 61.8K | 100K | 400K | 0 |
| Other Non-Current Liabilities | 0 | 0 | 0 | 184.14K | 159.6K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 15.66K | 389.3K | 192.25K | 0 | -47.9K | 0 | 0 |
| Total Liabilities | 14.98M | 14.2M | 9.94M | 7.62M | 7.48M | 5.98M | 8.46M | 5.83M | 9.38M | 10.59M | 11.84M | 14.4M | 15.3M | 6.44M | 5.43M | 4.78M | 4.19M | 3.6M | 4.49M | 3.94M | 3.57M | 5.35M | 6.38M | 6.19M | 7.97M | 7.98M | 8.01M | 10.15M | 9.9M | 8.8M |
| Total Debt | 7.9M | 7.21M | 2.94M | 2.39M | 1.81M | 1.96M | 2.7M | 1.18M | 2.53M | 3.83M | 5.09M | 6.29M | 6.4M | 0 | 0 | 0 | 0 | 0 | 300K | 0 | 0 | 1.67M | 3.07M | 4.29M | 5.51M | 5.4M | 5.78M | 8M | 7.1M | 6.5M |
| Net Debt | 6.69M | 6.5M | 861.99K | -2.33M | -5.77M | -3.67M | -2.12M | -4.21M | -3.54M | -1.95M | -1.11M | -865K | 540.27K | -5.32M | -4.13M | -3.34M | -3.74M | -1.25M | -375.64K | -2.83M | -3.49M | -2.77M | -1.49M | 3.01M | 5.35M | 5.32M | 5.65M | 7.7M | 5.3M | 5.7M |
| Debt / Equity | 1.51x | 1.03x | 0.28x | 0.17x | 0.09x | 0.10x | 0.14x | 0.06x | 0.13x | 0.20x | 0.28x | 0.32x | 0.29x | - | - | - | - | - | 0.03x | - | - | 0.12x | 0.26x | 0.43x | 0.63x | 0.77x | 0.69x | 0.94x | 0.71x | 0.66x |
| Debt / EBITDA | - | - | - | - | 39.74x | - | 0.94x | 0.25x | 0.39x | 0.56x | 0.99x | 0.85x | 1.02x | - | - | - | - | - | 0.03x | - | - | 0.27x | 0.67x | 1.86x | 1.29x | 1.27x | 1.37x | 2.86x | 1.82x | 8.13x |
| Net Debt / EBITDA | - | - | - | - | -126.46x | - | -0.74x | -0.89x | -0.54x | -0.29x | -0.22x | -0.12x | 0.09x | -1.53x | -0.62x | -0.51x | -0.59x | -0.19x | -0.04x | -0.34x | -0.48x | -0.45x | -0.32x | 1.30x | 1.25x | 1.25x | 1.34x | 2.75x | 1.36x | 7.13x |
| Interest Coverage | -4.21x | -12.48x | -90.32x | -466.31x | - | -11.17x | 74.74x | 42.75x | 43.35x | 32.55x | 17.34x | 24.79x | 108.21x | - | - | - | - | 368.46x | - | - | - | - | 26.10x | - | - | - | - | - | - | - |
| Total Equity | 5.23M | 6.97M | 10.64M | 14.37M | 19.4M | 18.97M | 19.36M | 20.39M | 19.56M | 18.83M | 18.48M | 19.74M | 22.16M | 17.39M | 18.74M | 16.65M | 14.73M | 13.24M | 11.66M | 14.51M | 15.49M | 13.89M | 11.59M | 9.89M | 8.82M | 7.06M | 8.43M | 8.5M | 10M | 9.8M |
| Equity Growth % | -25.03% | -34.42% | -25.99% | -25.93% | 2.28% | -2% | -5.07% | 4.26% | 3.87% | 1.89% | -6.38% | -10.95% | 27.46% | -7.19% | 12.5% | 13.05% | 11.25% | 13.62% | -19.7% | -6.27% | 11.46% | 19.88% | 17.18% | 12.13% | 24.9% | -16.25% | -0.79% | -15% | 2.04% | -11.71% |
| Book Value per Share | 0.65 | 0.99 | 1.69 | 2.31 | 3.16 | 3.13 | 3.09 | 3.41 | 3.27 | 3.14 | 3.03 | 3.08 | 3.44 | 2.80 | 2.98 | 2.65 | 2.37 | 2.15 | 1.79 | 2.18 | 2.21 | 2.04 | 1.75 | 1.51 | 1.38 | 1.08 | 1.00 | 0.98 | 1.06 | 1.02 |
| Total Shareholders' Equity | 5.23M | 6.97M | 10.64M | 14.37M | 19.4M | 18.97M | 19.36M | 20.39M | 19.56M | 18.83M | 18.48M | 18.87M | 20.42M | 16.38M | 18.74M | 16.65M | 14.73M | 13.24M | 11.66M | 14.51M | 15.49M | 13.89M | 11.59M | 9.89M | 8.82M | 7.06M | 8.43M | 8.5M | 10M | 9.8M |
| Common Stock | 9K | 8K | 6.31K | 6.26K | 6.19K | 6.07K | 6.02K | 5.96K | 5.9K | 5.85K | 5.84K | 180.38K | 184.21K | 182.05K | 184.87K | 182.1K | 180.81K | 179.7K | 179.43K | 183.4K | 188.46K | 138.06K | 128.19K | 75K | 55.68K | 57.7K | 71.61K | 0 | 0 | 0 |
| Retained Earnings | -9.95M | -5.39M | 734.15K | 4.91M | 10.59M | 10.99M | 11.89M | 13.73M | 13.42M | 13.28M | 13.13M | 11.52M | 10.34M | 8.64M | 9.84M | 8.41M | 6.92M | 5.75M | 4.43M | 7.33M | 4.92M | 2.66M | 8.78M | 7.09M | 6.24M | 4.25M | 2.69M | 1.6M | 1.2M | 1M |
| Treasury Stock | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Accumulated OCI | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -7.34M | -6.81M | -40K | -168.75K | -208.75K | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 869.67K | 1.74M | 1.01M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Capital structure deterioration
According to the latest quarterly data, RMCF's equity base has contracted from $12.3 million in 2024Q3 to $5.2 million in 2026Q4, reflecting a consistent trend of value destruction as accumulated losses erode the company's net worth over the observed two-year period.
The consistent decline in equity, coupled with rising debt levels, suggests that the company is increasingly reliant on external financing to sustain its operations. Investors should monitor whether this trajectory indicates a structural inability to maintain a stable capital base without further dilution or debt accumulation.
As reported in financial statements, RMCF's debt-to-equity ratio has surged from 0.23 in 2024Q3 to 1.51 by 2026Q4, signaling a significant shift toward debt-funded operations as the company struggles to generate sufficient internal cash flow to cover its ongoing obligations.
The increase in debt appears to be a necessity-driven response to persistent operating losses rather than a strategic move to optimize capital structure. This rising leverage profile warrants investigation into the company's long-term ability to service these obligations if the current revenue contraction persists.
Based on the provided figures, RMCF's cash position has dwindled to $1.2 million in 2026Q4, down from $2.1 million in 2024Q4, which suggests a tightening liquidity buffer that may limit the company's flexibility to navigate further operational shocks or seasonal demand volatility.
With a current ratio of 1.29, the company maintains a narrow margin of safety that appears insufficient given the ongoing cash burn. This liquidity profile suggests that the firm may face increasing difficulty in meeting short-term liabilities without access to additional capital or a rapid turnaround in performance.
As evidenced by the company's balance sheet, retained earnings have shifted from a positive $2.3 million in 2024Q3 to a deficit of $9.9 million in 2026Q4, highlighting the cumulative impact of sustained net losses on the company's long-term shareholder value.
The rapid depletion of retained earnings indicates that the business model is currently failing to generate the profitability required to sustain its equity base. This trend suggests that the company's capital structure is becoming increasingly fragile, potentially necessitating a strategic pivot or capital restructuring to restore financial health.
Quick answers to the most common questions about buying RMCF stock.
As of 2026, Rocky Mountain Chocolate Factory, Inc. (RMCF) had total assets of $20.2M including $8.8M in current assets.
Rocky Mountain Chocolate Factory, Inc. (RMCF) carries total debt of $7.9M, offset by $1.2M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Rocky Mountain Chocolate Factory, Inc. (RMCF) has total shareholders' equity (book value) of $5.2M ($0.65 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Rocky Mountain Chocolate Factory, Inc. (RMCF) reported a current ratio of 1.29x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.