Pearson plc (PSO) Financials
A multiple compares the market's price with a filed figure; it says what the market pays, not how the business is doing. The market capitalization is the vendor's as of Oct 22, 2026; every other figure is from the SEC filings on this page. Not financial advice.
Newest figures come from the 20-F for FY2025, filed Mar 13, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the PSO SEC filings page.
Pearson plc (PSO) reported $4.8B in revenue for fiscal year 2025, up 8.2% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 11 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).
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group, and the overall is the average of the dimensions that can be computed: here 5 of 6, with the others left out rather than counted as zero. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Pearson plc'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.
Pearson plc has an operating margin of 14.2%, meaning the company retains $14 of operating profit per $100 of revenue. This strong profitability earns a score of 71/100, reflecting efficient cost management and pricing power. This is down from 15.2% the prior year.
Pearson plc's revenue grew 8.2% year-over-year to $4.8B, a solid pace of expansion. This earns a growth score of 35/100.
Pearson plc has a moderate D/E ratio of 0.39. This balance of debt and equity financing earns a leverage score of 31/100.
Pearson plc's current ratio of 2.00 indicates adequate short-term liquidity, earning a score of 58/100. The company can meet its near-term obligations, though with limited headroom.
Not available for Pearson plc, so it is left out of the overall score, which averages the 5 of 6 dimensions that can be computed.
Pearson plc's ROE of 9.2% shows moderate profitability relative to equity, earning a score of 64/100. This is down from 10.8% the prior year.
Pearson plc scores 2.93, placing it in the grey zone between 1.81 and 2.99. The largest contribution to the score comes from a market capitalization of $11.1B against total liabilities of $3.8B. This signals moderate financial risk that warrants monitoring.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Pearson plc passes 7 of 9 financial strength tests. 3 of 4 profitability signals pass, 2 of 3 leverage/liquidity signals pass, both operating efficiency signals pass.
For every $1 of reported earnings, Pearson plc generates $1.96 in operating cash flow ($882.1M OCF vs $450.5M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Pearson plc earns $5.17 in operating income for every $1 of interest expense ($681.8M vs $131.8M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Earnings & Revenue
Pearson plc generated $4.8B in revenue in fiscal year 2025. This represents an increase of 8.2% from the prior year.
Pearson plc's EBITDA was $738.2M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 1.3% from the prior year.
Pearson plc reported $450.5M in net income in fiscal year 2025. This represents a decrease of 17.1% from the prior year.
Pearson plc earned $0.68 per diluted share (EPS) in fiscal year 2025. This represents a decrease of 14.2% from the prior year.
Cash & Balance Sheet
Pearson plc held $447.8M in cash against $1.9B in long-term debt as of fiscal year 2025.
Not reported for fiscal year 2025.
Not reported for fiscal year 2025.
Margins & Returns
Pearson plc's gross margin was 52.0% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 1.0 percentage points from the prior year.
Pearson plc's operating margin was 14.2% in fiscal year 2025, reflecting core business profitability. This is down 1.1 percentage points from the prior year.
Pearson plc's net profit margin was 9.4% in fiscal year 2025, showing the share of revenue converted to profit. This is down 2.8 percentage points from the prior year.
Pearson plc's ROE was 9.2% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 1.6 percentage points from the prior year.
Capital Allocation
Pearson plc invested $10.8M in research and development in fiscal year 2025. This represents an increase of 43.2% from the prior year.
Pearson plc spent $84.7M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents an increase of 105.0% from the prior year.
Not reported for fiscal year 2025.
PSO Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | FY2520-F | FY2420-F | FY2320-F | FY2220-F | FY2120-F | FY2020-F | FY1920-F | FY1820-F | FY1720-F | FY1620-F | FY1520-F |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $4.8B+8.2% | $4.4B-5.0% | $4.7B+0.9% | $4.6B+0.2% | $4.6B-0.3% | $4.6B-9.6% | $5.1B-2.6% | $5.3B-13.7% | $6.1B+8.7% | $5.6B-14.8% | $6.6B |
| Cost of Revenue | $2.3B+5.9% | $2.2B-7.0% | $2.3B-5.2% | $2.5B+4.8% | $2.4B-2.3% | $2.4B-2.1% | $2.5B-0.6% | $2.5B-11.3% | $2.8B+8.2% | $2.6B-11.6% | $2.9B |
| Gross Profit | $2.5B+10.3% | $2.3B-3.0% | $2.3B+7.9% | $2.2B-4.5% | $2.3B+1.9% | $2.2B-16.5% | $2.7B-4.4% | $2.8B-15.7% | $3.3B+9.1% | $3.0B-17.3% | $3.7B |
| R&D Expenses | $10.8M+43.2% | $7.5M-26.3% | $10.2M-15.6% | $12.1M-25.5% | $16.2M+7.8% | $15.0M-12.9% | $17.2M-3.5% | $17.9M-5.7% | $18.9M-33.2% | $28.4M-41.7% | $48.7M |
| Operating Income | $681.8M+0.6% | $677.4M+6.7% | $634.6M+93.9% | $327.3M+32.5% | $247.1M-56.0% | $561.5M+53.9% | $364.9M-48.3% | $705.8M+15.7% | $610.2Mn/m | -$3.1Bn/m | -$595.7M |
| EBITDA | $738.2M+1.3% | $728.7M+4.7% | $695.8M+76.2% | $394.9M+25.0% | $315.9M-52.9% | $670.8M+15.4% | $581.2M-31.6% | $850.0M+1.8% | $834.7M+148.8% | $335.6M-64.8% | $954.1M |
| Interest Expense | $131.8M-6.0% | $140.2M+35.9% | $103.2M+20.4% | $85.7M-6.6% | $91.8M-37.2% | $146.2M+31.2% | $111.5M-4.0% | $116.1M-13.3% | $133.9M+46.7% | $91.3M+1.5% | $90.0M |
| Income Tax | $162.7M+73.3% | $93.9M-34.8% | $144.0M+50.9% | $95.4Mn/m | -$1.4M-102.0% | $68.3Mn/m | -$45.1Mn/m | -$117.4M-767.6% | $17.6Mn/m | -$273.9Mn/m | -$119.4M |
| Net Income | $450.5M-17.1% | $543.4M+12.8% | $481.7M+64.8% | $292.3M+22.3% | $239.0M-47.0% | $450.8M+28.7% | $350.3M-53.3% | $750.5M+36.6% | $549.3Mn/m | -$2.9B-337.6% | $1.2B |
| EPS (Basic) | $0.69-14.4% | $0.81+19.3% | $0.68+70.8% | $0.40+24.8% | $0.32 | $59.70 | $0.45 | $96.49+42.9% | $67.51 | -$3.54-337.1% | $1.49 |
| EPS (Diluted) | $0.68-14.2% | $0.80+18.4% | $0.67+70.6% | $0.39+25.1% | $0.31 | $59.70 | $0.45 | $96.36+42.7% | $67.51 | -$3.54-337.1% | $1.49 |
| Diluted Shares (Avg) | 660M-3.5% | 684M-4.6% | 717M-3.3% | 742M-2.3% | 759M | 755M | 778M | 779M-4.3% | 814M | 815M+0.2% | 813M |
Not reported in any period shown, so not listed: SG&A Expenses.
PSO Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | FY2520-F | FY2420-F | FY2320-F | FY2220-F | FY2120-F | FY2020-F | FY1920-F | FY1820-F | FY1720-F | FY1620-F | FY1520-F |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Total Assets | $8.7B+0.6% | $8.6B+0.7% | $8.6B-3.1% | $8.8B-10.8% | $9.9B-2.6% | $10.2B+0.3% | $10.2B+0.6% | $10.1B-5.5% | $10.7B-14.1% | $12.4B-27.6% | $17.2B |
| Current Assets | $3.1B-8.7% | $3.4B+10.3% | $3.1B-8.5% | $3.4B-22.0% | $4.3B-2.8% | $4.5B+21.2% | $3.7B+5.8% | $3.5B+1.9% | $3.4B-32.2% | $5.0B | N/A |
| Cash & Equivalents | $447.8M-34.1% | $679.9M+71.0% | $397.6M-41.0% | $673.9M-46.7% | $1.3B-15.6% | $1.5B+158.5% | $579.9M-20.0% | $724.9M+3.4% | $700.8M-61.1% | $1.8B | N/A |
| Inventory | $88.8M-4.2% | $92.7M-20.1% | $116.0M-8.6% | $126.8M-4.2% | $132.3M-24.9% | $176.2M-21.4% | $224.2M+7.1% | $209.3M+4.5% | $200.2M-30.9% | $289.9M | N/A |
| Accounts Receivable | $1.5B+12.8% | $1.3B-3.6% | $1.3B-2.7% | $1.4B-18.9% | $1.7B+11.1% | $1.5B-9.7% | $1.7B+12.5% | $1.5B+0.1% | $1.5B-10.3% | $1.7B | N/A |
| Goodwill | $3.3B+6.9% | $3.1B-1.6% | $3.1B+3.6% | $3.0B+3.4% | $2.9B+1.2% | $2.9B+0.8% | $2.8B+5.3% | $2.7B-1.9% | $2.7B-4.9% | $2.9B-62.1% | $7.6B |
| Total Liabilities | $3.8B+5.7% | $3.6B+1.8% | $3.5B-0.7% | $3.5B-15.0% | $4.1B-8.8% | $4.5B+2.7% | $4.4B+2.3% | $4.3B-17.5% | $5.2B-25.8% | $7.1B-8.3% | $7.7B |
| Current Liabilities | $1.6B-15.6% | $1.9B+3.4% | $1.8B+0.2% | $1.8B-16.3% | $2.1B-0.6% | $2.1B+8.4% | $2.0B-0.6% | $2.0B-8.9% | $2.2B-7.8% | $2.4B | N/A |
| Non-Current Liabilities | $2.2B+28.9% | $1.7B+0.2% | $1.7B-1.5% | $1.7B-13.7% | $2.0B-12.4% | $2.3B-6.2% | $2.4B+53.1% | $1.6B-29.3% | $2.2B-52.0% | $4.7B | N/A |
| Long-Term Debt | $1.9B+31.7% | $1.4B+3.9% | $1.4B+0.9% | $1.4B-17.8% | $1.7B-11.9% | $1.9B-8.5% | $2.1B+142.5% | $860.2M-40.4% | $1.4B-51.8% | $3.0B | N/A |
| Total Equity | $4.9B-3.0% | $5.1B-0.2% | $5.1B-4.7% | $5.3B-7.8% | $5.8B+2.3% | $5.6B-1.5% | $5.7B-0.7% | $5.8B+6.2% | $5.4B+1.3% | $5.4B-43.4% | $9.5B |
| Retained Earnings | $845.8M-18.3% | $1.0B+9.1% | $949.4M-10.8% | $1.1B-26.1% | $1.4B+21.9% | $1.2B-2.2% | $1.2B-8.8% | $1.3B+48.1% | $895.6M+1.4% | $883.3M | N/A |
Not reported in any period shown, so not listed: Short-Term Investments, Long-Term Investments.
PSO Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | FY2520-F | FY2420-F | FY2320-F | FY2220-F | FY2120-F | FY2020-F | FY1920-F | FY1820-F | FY1720-F | FY1620-F | FY1520-F |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $882.1M+12.4% | $785.1M+17.3% | $669.0M+53.4% | $436.0M-0.9% | $440.1M-17.2% | $531.5M+8.5% | $489.6M-17.0% | $589.7M+46.3% | $403.2M-20.3% | $505.8M+62.6% | $311.1M |
| Depreciation & Amortization | $56.5M+10.0% | $51.3M-16.1% | $61.2M-9.6% | $67.6M-1.8% | $68.9M-37.0% | $109.3M-49.5% | $216.3M+50.0% | $144.2M-35.8% | $224.6M-93.4% | $3.4B+120.4% | $1.5B |
| Capital Expenditures | N/A | N/A | N/A | N/A | $86.4M+19.3% | $72.4M-0.8% | $73.0M-18.3% | $89.3M-19.5% | $110.9M+2.2% | $108.6M-14.4% | $126.8M |
| Free Cash Flow | N/A | N/A | N/A | N/A | $353.7M-22.9% | $459.0M+10.2% | $416.6M-16.7% | $500.3M+71.2% | $292.2M-26.4% | $397.3M+115.5% | $184.3M |
| Investing Cash Flow | -$326.8Mn/m | -$164.0Mn/m | -$383.6M-2543.1% | $15.7Mn/m | -$108.0M-113.4% | $807.4Mn/m | -$431.2M-260.1% | $269.3M-69.4% | $880.7Mn/m | -$50.6M-102.6% | $2.0B |
| Financing Cash Flow | -$818.9Mn/m | -$301.8Mn/m | -$573.4Mn/m | -$971.0Mn/m | -$558.9Mn/m | -$408.5Mn/m | -$135.3Mn/m | -$930.4Mn/m | -$2.4Bn/m | -$859.9Mn/m | -$536.8M |
| Dividends Paid | $215.2M+10.1% | $195.3M-0.5% | $196.2M+4.2% | $188.4M-6.3% | $201.2M+0.8% | $199.5M+2.3% | $195.1M+12.4% | $173.6M-59.7% | $430.2M-17.8% | $523.1M-16.1% | $623.8M |
| Share Buybacks | $84.7M+105.0% | $41.3M-7.4% | $44.6M-0.2% | $44.7M+106.9% | $21.6M+163.5% | $8.2M-88.1% | $69.0M | N/A | N/A | $33.3M-1.8% | $33.9M |
Not reported in any period shown, so not listed: Stock-Based Compensation.
PSO Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | FY2520-F | FY2420-F | FY2320-F | FY2220-F | FY2120-F | FY2020-F | FY1920-F | FY1820-F | FY1720-F | FY1620-F | FY1520-F |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 52.0%+1.0pp | 51.0%+1.0pp | 50.0%+3.2pp | 46.7%-2.3pp | 49.0%+1.1pp | 48.0%-4.0pp | 52.0%-1.0pp | 52.9%-1.3pp | 54.2%+0.2pp | 54.0%-1.6pp | 55.7% |
| Operating Margin | 14.2%-1.1pp | 15.2%+1.7pp | 13.6%+6.5pp | 7.1%+1.7pp | 5.3%-6.8pp | 12.1%+5.0pp | 7.1%-6.3pp | 13.4%+3.4pp | 10.0%+64.8pp | -54.9%-45.8pp | -9.0% |
| Net Margin | 9.4%-2.8pp | 12.2%+1.9pp | 10.3%+4.0pp | 6.3%+1.1pp | 5.2%-4.6pp | 9.7%+2.9pp | 6.8%-7.4pp | 14.2%+5.2pp | 9.0%+60.3pp | -51.3%-69.8pp | 18.4% |
| Return on Equity | 9.2%-1.6pp | 10.8%+1.2pp | 9.5%+4.0pp | 5.5%+1.3pp | 4.2%-3.9pp | 8.0%+1.9pp | 6.1%-6.9pp | 13.0%+2.9pp | 10.1%+63.9pp | -53.8%-66.6pp | 12.8% |
| Return on Assets | 5.2%-1.1pp | 6.3%+0.7pp | 5.6%+2.3pp | 3.3%+0.9pp | 2.4%-2.0pp | 4.4%+1.0pp | 3.5%-4.0pp | 7.4%+2.3pp | 5.1%+28.4pp | -23.2%-30.3pp | 7.1% |
| Current Ratio | 2.00+0.2x | 1.85+0.1x | 1.73-0.2x | 1.89-0.1x | 2.030.0x | 2.08+0.2x | 1.86+0.1x | 1.75+0.2x | 1.56-0.6x | 2.12 | N/A |
| Debt-to-Equity | 0.39+0.1x | 0.290.0x | 0.280.0x | 0.260.0x | 0.290.0x | 0.340.0x | 0.36+0.2x | 0.15-0.1x | 0.27-0.3x | 0.56 | N/A |
| Liabilities-to-Equity | 0.77+0.1x | 0.700.0x | 0.690.0x | 0.66-0.1x | 0.72-0.1x | 0.800.0x | 0.770.0x | 0.75-0.2x | 0.96-0.4x | 1.32+0.5x | 0.81 |
| Asset Turnover | 0.550.0x | 0.520.0x | 0.550.0x | 0.52+0.1x | 0.470.0x | 0.460.0x | 0.510.0x | 0.520.0x | 0.57+0.1x | 0.45+0.1x | 0.38 |
| FCF Margin | N/A | N/A | N/A | N/A | 7.6%-2.3pp | 9.9%+1.8pp | 8.1%-1.4pp | 9.5%+4.7pp | 4.8%-2.3pp | 7.1%+4.3pp | 2.8% |
Similar Companies
Newest fiscal year on record for each company. The health score is the peer-relative Financial Health Score for that year; a dash means no score is published for it.
| Company | Fiscal year | Revenue | Net income | Net margin | Market cap | Health score |
|---|---|---|---|---|---|---|
| Pearson plc PSO | FY2025 | $4.8B | $450.5M | 9.4% | $11.1B | 52/100 |
| New York Times Co. NYT | FY2025 | $2.8B | $344.0M | 12.2% | $11.2B | 67/100 |
| John Wiley & Sons, Inc. WLYB | FY2026 | $1.7B | $221.6M | 13.2% | $2.7B | 43/100 |
| John Wiley & Sons, Inc. WLY | FY2026 | $1.7B | $221.6M | 13.2% | $2.7B | 43/100 |
| Scholastic Corp SCHL | FY2026 | $1.6B | $56.7M | 3.6% | $718.2M | 46/100 |
Where Pearson plc Ranks
Frequently Asked Questions
What is Pearson plc's annual revenue?
Pearson plc (PSO) reported $4.8B in total revenue for fiscal year 2025. This represents a 8.2% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Pearson plc's revenue growing?
Pearson plc (PSO) revenue grew by 8.2% year-over-year, from $4.4B to $4.8B in fiscal year 2025.
Is Pearson plc profitable?
Yes, Pearson plc (PSO) reported a net income of $450.5M in fiscal year 2025, with a net profit margin of 9.4%.
What is Pearson plc's EBITDA?
Pearson plc (PSO) had EBITDA of $738.2M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Pearson plc have?
As of fiscal year 2025, Pearson plc (PSO) had $447.8M in cash and equivalents against $1.9B in long-term debt.
What is Pearson plc's gross margin?
Pearson plc (PSO) had a gross margin of 52.0% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Pearson plc's operating margin?
Pearson plc (PSO) had an operating margin of 14.2% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Pearson plc's net profit margin?
Pearson plc (PSO) had a net profit margin of 9.4% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Pearson plc's return on equity (ROE)?
Pearson plc (PSO) has a return on equity of 9.2% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Pearson plc's operating cash flow?
Pearson plc (PSO) generated $882.1M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Pearson plc's total assets?
Pearson plc (PSO) had $8.7B in total assets as of fiscal year 2025, including both current and long-term assets.
How much does Pearson plc spend on research and development?
Pearson plc (PSO) invested $10.8M in research and development during fiscal year 2025.
What is Pearson plc's current ratio?
Pearson plc (PSO) had a current ratio of 2.00 as of fiscal year 2025, which is generally considered healthy.
What is Pearson plc's debt-to-equity ratio?
Pearson plc (PSO) had a debt-to-equity ratio of 0.39 as of fiscal year 2025. We compute it as long-term debt divided by total shareholder equity, where long-term debt is the noncurrent part of the company's borrowings, so debt due within the next twelve months is not counted.
What is Pearson plc's liabilities-to-equity ratio?
Pearson plc (PSO) had a liabilities-to-equity ratio of 0.77 as of fiscal year 2025, which is total liabilities divided by total shareholder equity. Total liabilities counts every obligation on the balance sheet (payables, deposits, insurance reserves and deferred taxes as well as borrowings), so this ratio usually runs well above debt-to-equity.
What is Pearson plc's return on assets (ROA)?
Pearson plc (PSO) had a return on assets of 5.2% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Pearson plc's P/E ratio?
Pearson plc (PSO) trades at 24.5x earnings, its market capitalization divided by $450.5M net income, FY2025. The market capitalization is $11.1B as of Oct 22, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Pearson plc's price-to-sales ratio?
Pearson plc (PSO) trades at 2.3x sales, its market capitalization divided by $4.8B revenue, FY2025. The market capitalization is $11.1B as of Oct 22, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Pearson plc's Altman Z-Score?
Pearson plc (PSO) has an Altman Z-Score of 2.93, placing it in the Grey Zone (moderate risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Pearson plc's Piotroski F-Score?
Pearson plc (PSO) has a Piotroski F-Score of 7 out of 9, indicating strong 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 Pearson plc's earnings high quality?
Pearson plc (PSO) has an earnings quality ratio of 1.96x, considered cash-backed (high quality). 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.
Can Pearson plc cover its interest payments?
Pearson plc (PSO) has an interest coverage ratio of 5.17x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Pearson plc?
Pearson plc (PSO) scores 52 out of 100 on our Financial Health Score, indicating moderate standing within its operating companies peer group. The score is the average of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. For Pearson plc it averages the 5 of 6 dimensions that can be computed; the others are left out rather than counted as zero. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.