Capital Southwest Financials
This page shows Capital Southwest (CSWC) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 10 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Capital Southwest's earnings engine is balance-sheet expansion, with asset growth lifting income while leverage remains roughly anchored near 1.1x.
Reported profit and reported cash moved in opposite directions: from FY2022 through FY2025, net income climbed from$42.7M to$118.2M even though operating cash flow stayed negative every year. Paired with consistently positive financing cash flow, that pattern suggests cash was being redeployed into a larger asset book, so growth depended on ongoing access to debt and equity capital rather than on cash accumulation.
From FY2024 to FY2026, total assets increased from
Between FY2024 and FY2026, shares outstanding rose
Financial Health Signals
Based on FY2026 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →
Health score ≠ stock price. This rates the quality of Capital Southwest's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Capital Southwest carries a low D/E ratio of 1.12, meaning only $1.12 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 79/100, indicating a strong balance sheet with room for future borrowing.
Capital Southwest's ROE of 11.2% shows moderate profitability relative to equity, earning a score of 34/100. This is up from 8.0% the prior year.
Capital Southwest passes 2 of 9 financial strength tests. 2 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution).
For every $1 of reported earnings, Capital Southwest generates $-1.71 in operating cash flow (-$193.5M OCF vs $113.0M net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.
Key Financial Metrics
Earnings & Revenue
Capital Southwest reported $113.0M in net income in fiscal year 2026. This represents an increase of 60.2% from the prior year.
Capital Southwest earned $1.90 per diluted share (EPS) in fiscal year 2026. This represents an increase of 29.3% from the prior year.
Cash & Balance Sheet
Capital Southwest generated -$193.8M in free cash flow in fiscal year 2026, representing cash available after capex. This represents an increase of 11.5% from the prior year.
Capital Southwest held $29.0M in cash against $1.1B in long-term debt as of fiscal year 2026.
Capital Southwest paid $2.56 per share in dividends in fiscal year 2026. This represents an increase of 1.2% from the prior year.
Capital Southwest had 62M shares outstanding in fiscal year 2026. This represents an increase of 17.4% from the prior year.
Margins & Returns
Capital Southwest's ROE was 11.2% in fiscal year 2026, measuring profit generated per dollar of shareholder equity. This is up 3.2 percentage points from the prior year.
Capital Allocation
Capital Southwest invested $286K in capex in fiscal year 2026, funding long-term assets and infrastructure. This represents a decrease of 82.8% from the prior year.
CSWC Income Statement
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Revenue | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Cost of Revenue | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Gross Profit | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| R&D Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A Expenses | N/A | $1.7M+2.2% | $1.7M+0.5% | $1.7M | N/A | $1.6M+10.9% | $1.5M-5.8% | $1.6M |
| Operating Income | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Interest Expense | N/A | $18.1M+12.7% | $16.0M+5.0% | $15.3M | N/A | $14.7M+16.9% | $12.6M+1.1% | $12.4M |
| Income Tax | N/A | -$2.4M-215.8% | $2.0M+145.5% | $828K | N/A | $367K+131.9% | -$1.2M-147.4% | $2.4M |
| Net Income | $27.5M-16.5% | $32.9M+28.4% | $25.6M-5.1% | $27.0M+53.8% | $17.6M+7.9% | $16.3M-28.3% | $22.7M+61.6% | $14.0M |
| EPS (Diluted) | $0.44-18.5% | $0.54+22.7% | $0.44-8.3% | $0.48+37.1% | $0.35+2.9% | $0.34-29.2% | $0.48+54.8% | $0.31 |
CSWC Balance Sheet
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $2.2B+2.9% | $2.1B+4.7% | $2.0B+7.4% | $1.9B0.0% | $1.9B+5.2% | $1.8B+11.5% | $1.6B+3.9% | $1.5B |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Cash & Equivalents | $29.0M-31.8% | $42.6M-51.3% | $87.4M+86.5% | $46.9M+8.5% | $43.2M+20.0% | $36.0M-23.8% | $47.2M+41.9% | $33.3M |
| Inventory | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Goodwill | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Liabilities | $1.2B+4.1% | $1.1B+4.3% | $1.1B+11.2% | $965.9M-3.3% | $999.2M+4.2% | $958.6M+17.9% | $813.2M+6.1% | $766.7M |
| Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Long-Term Debt | $1.1B+5.5% | $1.1B+3.6% | $1.0B+11.8% | $926.0M-3.1% | $956.1M+3.9% | $920.2M+17.2% | $785.0M+6.7% | $735.4M |
| Total Equity | $1.0B+1.5% | $995.6M+5.1% | $947.0M+3.3% | $916.5M+3.7% | $883.6M+6.4% | $830.4M+5.0% | $791.3M+1.8% | $777.3M |
| Retained Earnings | -$79.0M-3.3% | -$76.5M+28.9% | -$107.5M-10.7% | -$97.1M-9.4% | -$88.7M-3.7% | -$85.6M-12.8% | -$75.8M-11.5% | -$68.0M |
CSWC Cash Flow Statement
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$59.1M+36.8% | -$93.6M-31.5% | -$71.2M-333.6% | $30.5M+151.9% | -$58.7M+64.6% | -$165.8M-595.8% | -$23.8M-176.6% | $31.1M |
| Capital Expenditures | $49K+226.7% | $15K-81.5% | $81K-42.6% | $141K-64.4% | $396K-47.1% | $748K+50.5% | $497K+1888.0% | $25K |
| Free Cash Flow | -$59.2M+36.8% | -$93.6M-31.3% | -$71.3M-334.9% | $30.4M+151.3% | -$59.1M+64.5% | -$166.6M-584.7% | -$24.3M-178.2% | $31.1M |
| Investing Cash Flow | -$49K-226.7% | -$15K+81.5% | -$81K+42.6% | -$141K+64.4% | -$396K+47.1% | -$748K-50.5% | -$497K-1888.0% | -$25K |
| Financing Cash Flow | $44.4M-8.9% | $48.8M-56.4% | $111.8M+519.1% | -$26.7M-139.3% | $68.0M-56.2% | $155.3M+306.0% | $38.3M+227.2% | -$30.1M |
| Dividends Paid | $38.5M+3.3% | $37.3M+3.6% | $36.0M+1.9% | $35.3M+4.9% | $33.7M+6.9% | $31.5M+3.4% | $30.5M+3.4% | $29.5M |
| Share Buybacks | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
CSWC Financial Ratios
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Operating Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Net Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Return on Equity | 2.7%-0.6pp | 3.3%+0.6pp | 2.7%-0.2pp | 2.9%+1.0pp | 2.0%+0.0pp | 2.0%-0.9pp | 2.9%+1.1pp | 1.8% |
| Return on Assets | 1.3%-0.3pp | 1.6%+0.3pp | 1.3%-0.2pp | 1.4%+0.5pp | 0.9%+0.0pp | 0.9%-0.5pp | 1.4%+0.5pp | 0.9% |
| Current Ratio | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Debt-to-Equity | 1.12+0.0 | 1.08-0.0 | 1.09+0.1 | 1.01-0.1 | 1.08-0.0 | 1.11+0.1 | 0.99+0.0 | 0.95 |
| FCF Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
Similar Companies
Frequently Asked Questions
Is Capital Southwest profitable?
Yes, Capital Southwest (CSWC) reported a net income of $113.0M in fiscal year 2026.
How much debt does Capital Southwest have?
As of fiscal year 2026, Capital Southwest (CSWC) had $29.0M in cash and equivalents against $1.1B in long-term debt.
Does Capital Southwest pay dividends?
Yes, Capital Southwest (CSWC) paid $2.56 per share in dividends during fiscal year 2026.
What is Capital Southwest's return on equity (ROE)?
Capital Southwest (CSWC) has a return on equity of 11.2% for fiscal year 2026, measuring how efficiently the company generates profit from shareholder equity.
What is Capital Southwest's free cash flow?
Capital Southwest (CSWC) generated -$193.8M in free cash flow during fiscal year 2026. This represents a 11.5% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Capital Southwest's operating cash flow?
Capital Southwest (CSWC) generated -$193.5M in operating cash flow during fiscal year 2026, representing cash generated from core business activities.
What are Capital Southwest's total assets?
Capital Southwest (CSWC) had $2.2B in total assets as of fiscal year 2026, including both current and long-term assets.
What are Capital Southwest's capital expenditures?
Capital Southwest (CSWC) invested $286K in capital expenditures during fiscal year 2026, funding long-term assets and infrastructure.
What is Capital Southwest's debt-to-equity ratio?
Capital Southwest (CSWC) had a debt-to-equity ratio of 1.12 as of fiscal year 2026, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Capital Southwest's return on assets (ROA)?
Capital Southwest (CSWC) had a return on assets of 5.2% for fiscal year 2026, measuring how efficiently the company uses its assets to generate profit.
What is Capital Southwest's cash runway?
Based on fiscal year 2026 data, Capital Southwest (CSWC) had $29.0M in cash against an annual operating cash burn of $193.5M. This gives an estimated cash runway of approximately 2 months at the current burn rate. Cash runway measures how long a company can continue operating before running out of cash, assuming no additional funding.
What is Capital Southwest's Piotroski F-Score?
Capital Southwest (CSWC) has a Piotroski F-Score of 2 out of 9, indicating weak financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Capital Southwest's earnings high quality?
Capital Southwest (CSWC) has an earnings quality ratio of -1.71x, considered low quality (accrual-driven). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
How financially healthy is Capital Southwest?
Capital Southwest (CSWC) scores 19 out of 100 on our Financial Profile, indicating weak overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.