Forensic Analysis · Furniture & Home Furnishings · as of Nov 9, 2026
Ethan Allen Interiors Inc (ETD)
A forensic read on Ethan Allen Interiors Inc built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
B · Sound & dependable
Forensic grade
Safe
Financial health
7.4
Distress distance
Clean
Earnings quality
4
Forensic signals
8.4%
ROE
-5.7%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (auditor quality, say on pay, board independence, going concern). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Ethan Allen Interiors Inc earns a B (Sound & dependable) forensic quality grade, and its balance-sheet distress test reads 7.4, placing it in the Safe zone. 4 forensic signals were flagged in its latest SEC filings, led by shareholder returns.
What the filings flag
123% of FCF
FY2026
Shareholder returns.Returned $51M to shareholders (buybacks + dividends) in FY2026 — 123% of free cash flow. That is $10M (23%) more than free cash flow covered. It came out of the balance sheet's own liquid holdings, not new debt: cash and short-term investments fell $3M over FY2026 — $3M of the $10M. The FY2026 cash-flow statement filed $60M from sales and maturities of investments against $55M of investments purchased; net cash used in investing activities of $3M; net cash used in financing activities of $53M. A payout past free cash flow draws the balance sheet down in every year it continues, which isn't sustainable indefinitely. Counting the $1M of stock-based comp paid out in shares on top of that, the combined claim on free cash flow is 126%.
235d
FY2025→FY2026
Inventory days.Days inventory outstanding moved from 213 to 235 FY2025→FY2026 (against cost of goods sold; inventory +5% vs -7% in cost of sales). Inventory is building a little faster than sales — watch for markdowns.
6.7%
FY2026
Return on invested capital.Return on invested capital is 6.7% in the latest fiscal year and slipping across FY2024–FY2026 from 11.2%. After-tax operating profit was $58M in FY2024 and $34M in FY2026, with operating income at 12.1% of revenue in FY2024, 10.1% in FY2025 and 7.8% in FY2026. The capital base behind it went from $522M in FY2024 to $503M in FY2026 (-4%), while the revenue it carried went from $646M to $579M. $60M of the $503M base at FY2026 is short-term investments (11.9%) — securities held beside cash, which the base keeps because only cash is subtracted from it; they earn the balance sheet's yield, which is not in the operating profit above, so this rate understates what the operating capital earns.
-7%
FY2025→FY2026
Dividend — cut.The payout was CUT ~7% in FY2026 (from FY2025). It still returns some cash, but it is NOT the dependable, rising dividend an unbroken streak implies.
Key fundamentals
Latest Revenue$579.5M
Revenue Growth YoY-5.7%
Revenue CAGR (2yr)-5.3%
Net Margin6.9%
Free Cash Flow$41.4M
Return on Equity8.4%
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Ethan Allen Interiors Inc's actual 10-K/10-Q/8-K filings?