eml_10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	for the quarterly period ended March 29, 2025

OR

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	for the transition period from ________________ to _______________

Commission File Number 001-35383

THE EASTERN COMPANY

(Exact name of registrant as specified in its charter)

Connecticut		06-0330020
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

3 Enterprise Drive, Suite 408, Shelton, Connecticut		06484
(Address of principal executive offices)		(Zip Code)

(203)-729-2255

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, No Par Value	EML	NASDAQ Global Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of March 29, 2025, 6,146,785 shares of the registrant’s common stock, no par value per share, were issued and outstanding.

The Eastern Company and Subsidiaries

Form 10-Q

FOR THE QUARTERLY PERIOD ENDED MARCH 29, 2025

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		Page



PART I	FINANCIAL INFORMATION

Item 1.	Financial Statements (unaudited)	3
	Condensed Consolidated Statements of Operations	3
	Condensed Consolidated Statements of Comprehensive Income	4
	Condensed Consolidated Balance Sheets	5
	Condensed Consolidated Statements of Cash Flows	7
	Notes to Condensed Consolidated Financial Statements	8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	30

Item 4.	Controls and Procedures	30

PART II	OTHER INFORMATION

Item 1.	Legal Proceedings	31

Item 1A.	Risk Factors	31

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31

Item 3.	Defaults Upon Senior Securities	31

Item 4.	Mine Safety Disclosures	31

Item 5.	Other Information	31

Item 6	Exhibits	32

SIGNATURES		33

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PART 1 – FINANCIAL INFORMATION

ITEM 1 – FINANCIAL STATEMENTS

THE EASTERN COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

	Three Months Ended
	March 29, 2025			March 30, 2024
Net sales	$	63,312,774		$	64,624,238
Cost of products sold		(49,125,302	)		(49,170,711	)
Gross margin		14,187,472			15,453,527

Product development expense		(1,109,186	)		(1,359,797	)
Selling and administrative expenses		(9,847,121	)		(10,683,652	)
Operating profit		3,231,165			3,410,078

Interest expense		(617,470	)		(676,028	)
Other (expense) income		(199,705	)		9,996
Income before income taxes from continuing operations		2,413,990			2,744,046

Income tax expense		(507,179	)		(608,629	)
Net income from continuing operations	$	1,906,811		$	2,135,417

Discontinued Operations (see note B)
Income (Loss) from operations of discontinued unit	$	46,687		$	(241,382	)

Income tax benefit (expense)		(9,809	)		53,537

Income (Loss) on discontinued operations	$	36,878		$	(187,845	)

Net Income	$	1,943,689		$	1,947,572

Earnings per share from continuing operations:
Basic	$	0.31		$	0.34

Diluted	$	0.31		$	0.34

Earnings (Loss) per share from discontinued operations:
Basic	$	0.01		$	(0.03	)

Diluted	$	0.01		$	(0.03	)
Total earnings per share:
Basic	$	0.32		$	0.31

Diluted	$	0.32		$	0.31

Cash dividends per share:	$	0.11		$	0.11

See accompanying notes.

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THE EASTERN COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

	Three Months Ended
	March 29, 2025		March 30, 2024
Net income	$	1,943,689	$	1,947,572
Other comprehensive income:

Change in foreign currency translation		715,575		(157,000	)

Change in fair value of foreign currency swap		197,172		403,016

Change in pension and postretirement benefit costs, net of taxes: 2025 - $60,963; 2024 - $71,355		205,725		243,336
Total other comprehensive income		1,118,472		489,352
Comprehensive income	$	3,062,161	$	2,436,924

See accompanying notes.

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THE EASTERN COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

	March 29, 2025			December 28, 2024
	(unaudited)
ASSETS
Current Assets
Cash and cash equivalents	$	7,902,956		$	14,010,388
Marketable Securities		2,333,000			2,051,301
Accounts receivable, less allowances: 2025 - $535,583; 2024 - $530,560		33,489,814			35,515,632
Inventories		55,360,286			55,209,598
Current portion of notes receivable		19,621			286,287
Prepaid expenses and other assets		4,172,486			3,477,717
Current assets held for sale		6,346,332			5,071,828
Total Current Assets		109,624,495			115,622,751

Property, Plant and Equipment		57,319,191			56,320,688
Accumulated depreciation		(29,642,523	)		(28,810,628	)
Property, Plant and Equipment, Net		27,676,668			27,510,060

Goodwill		58,615,176			58,509,384
Trademarks		3,769,036			3,946,455
Patents and other intangibles net of accumulated amortization		8,357,673			8,765,612
Long term notes receivable, less current portion		114,223			162,102
Deferred income taxes		6,207,128			6,611,518
Right of use assets		17,965,279			14,180,865
Total Other Assets		95,028,515			92,175,936

TOTAL ASSETS	$	232,329,678		$	235,308,747

See accompanying notes.

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THE EASTERN COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

	March 29, 2025			December 28, 2024
	(unaudited)
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	20,432,183		$	19,650,970
Accrued compensation		4,158,549			5,478,581
Other accrued expenses		3,732,614			9,577,019
Current portion of operating lease liability		3,840,835			3,072,668
Current portion of finance lease liability		757,403			761,669
Current portion of long-term debt		3,978,246			3,603,935
Other current liabilities		308,204			505,376
Current liabilities held for sale		2,368,166			2,144,573
Total Current Liabilities		39,576,200			44,794,791

Other long-term liabilities		550,099			546,395
Operating lease liability, less current portion		14,119,143			11,108,197
Finance lease liability, less current portion		2,929,287			3,052,073
Long-term debt, less current portion		37,553,030			38,640,576
Accrued postretirement benefits		409,404			410,476
Accrued pension cost		16,192,871			16,064,840
Total Liabilities		111,330,034			114,617,348

Shareholders’ Equity
Voting Preferred Stock, no par value:
Authorized and unissued: 1,000,000 shares
Nonvoting Preferred Stock, no par value:
Authorized and unissued: 1,000,000 shares
Common Stock, no par value, Authorized: 50,000,000 shares		35,419,931			35,443,009
Issued: 9,156,500 shares as of 2025 and 9,146,996 shares as of 2024
Outstanding: 6,122,055 shares as of 2025 and 6,163,138 shares as of 2024
Treasury Stock: 3,034,445 shares as of 2025 and 2,983,858 shares as of 2024		(27,739,112	)		(26,338,309	)
Retained earnings		134,159,324			133,545,670
Accumulated other comprehensive loss:
Foreign currency translation		(1,561,015	)		(2,276,590	)
Unrealized gain on foreign currency swap, net of tax		(308,204	)		(505,376	)
Unrecognized net pension and postretirement benefit costs, net of tax		(18,971,280	)		(19,177,005	)
Accumulated other comprehensive loss		(20,840,499	)		(21,958,971	)
Total Shareholders’ Equity		120,999,644			120,691,399
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	232,329,678		$	235,308,747

See accompanying notes.

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THE EASTERN COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

	Three Months Ended
	March 29, 2025			March 30, 2024
Operating Activities
Net income	$	1,943,689		$	1,947,572
Less: Income (Loss) from discontinued operations		36,878			(187,845	)
Income from continuing operations	$	1,906,811		$	2,135,417
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization		1,513,054			1,876,125
Acquisition related expenses		21,039			-
Reduction in carrying amount of ROU assets		3,784,982			(775,502	)
Unrecognized pension and postretirement (benefit) expense		(13,898	)		445,218
Loss on sale of equipment and other assets		-			37,330
Provision for doubtful accounts		11,000			(23,000	)
Stock compensation (benefit) expense		(23,078	)		513,737
Changes in operating assets and liabilities:
Accounts receivable		2,015,269			(6,383,857	)
Inventories		(137,403	)		3,262,289
Prepaid expenses and other		(695,563	)		(8,763	)
Other assets		171,271			21,711
Accounts payable		560,951			2,278,476
Accrued compensation		(1,256,224	)		(803,709	)
Change in operating lease liability		(3,784,982	)		775,502
Other accrued expenses		(5,921,413	)		(568,247	)
Net cash (used in) provided by operating activities		(1,848,184	)		2,782,727

Investing Activities
Marketable securities		(309,385	)		(999,960	)
Acquisition		(421,039	)		-
Payments received from notes receivable		14,545			-
Proceeds from sale of equipment		-			18,000
Purchases of property, plant, and equipment		(849,396	)		(1,711,560	)
Net cash used in investing activities		(1,565,275	)		(2,693,520	)

Financing Activities
Payments on short term borrowings (revolver)		-			(7,662	)
Principal payments on long-term debt		(750,000	)		(792,467	)
Financing leases, net		(126,990	)		(26,618	)
Purchase common stock for treasury		(1,400,804	)		(234,800	)
Dividends paid		(675,053	)		(683,065	)
Net cash used in financing activities		(2,952,847	)		(1,744,612	)

Discontinued Operations
Cash provided by operating activities		389,947			803,130
Cash used in investing activities		-			(65,395	)
Cash used in financing activities		(6,347	)		(4,619	)
Cash provided by discontinued operations		383,600			733,116

Effect of exchange rate changes on cash		218,620			(20,720	)
Net change in cash and cash equivalents		(5,764,086	)		(943,009	)

Cash and cash equivalents at beginning of period		14,843,530			8,299,453
Cash and cash equivalents at end of period¹	$	9,079,444		$	7,356,444

Supplemental disclosure of cash flow information:
Interest	$	671,762		$	831,462
Income taxes		427,318			230,523

Non-cash investing and financing activities
Right of use asset		3,784,982			(715,323	)
Lease liability		224,769			215,690

See accompanying notes

¹ includes cash from assets held for sale of $1.2 million as of March 29, 2025 and $0.4 million as of March 30, 2024

See accompanying notes

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Note A – Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X and do not include all the information and footnotes required by generally accepted accounting principles in the United States (“GAAP”) for complete financial statements. Refer to the consolidated financial statements of The Eastern Company (together with its consolidated subsidiaries, the “Company,” “we,” “us” or “our”) and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 28, 2024, filed with the Securities and Exchange Commission on March 11, 2025 (the “2024 Form 10-K”), for additional information.

The accompanying condensed consolidated financial statements are unaudited. However, in the opinion of management, all adjustments (consisting only of normal recurring accruals) necessary for a fair presentation of the results of operations for interim periods have been reflected therein. Operating results for interim periods are not necessarily indicative of the results that may be expected for the full year. All intercompany accounts and transactions are eliminated.

The condensed consolidated balance sheet as of December 28, 2024 has been derived from the audited consolidated balance sheet at that date.

The Company’s fiscal year is a 52-53-week fiscal year ending on the Saturday nearest to December 31. References in this Quarterly Report on Form 10-Q for the quarterly period ended March 29, 2025 (this “Form 10-Q”) to 2024, the 2024 fiscal year or fiscal 2024 mean the 52-week period ended on December 28, 2024, and references to 2025, the 2025 fiscal year or fiscal 2025 mean the 53-week period ending on January 3, 2026. In a 52-week fiscal year, each quarter has 13 weeks. References to the first quarter of 2024, the first fiscal quarter of 2024, the first three months of 2024 or the three months ended March 30, 2024 mean the 13-week period from December 31, 2023 to March 30, 2024. References to the first quarter of 2025, the first fiscal quarter of 2025, the first three months of 2025 or the three months ended March 29, 2025, mean the 13-week period from December 29, 2024 to March 29, 2025.

Certain amounts in the 2024 financial statements have been reclassified to conform with the 2025 presentation with no impact or change to previously reported net income or shareholders’ equity. See Note B, Discontinued Operations, for additional information.

Note B – Discontinued Operations

In the third quarter of 2024, we determined that the business of Big 3 Mold Services, Inc. (“Big 3 Mold”) meets the criteria to be held for sale and that the assets held for sale qualify for discontinued operations. As such, the financial results of the Big 3 Mold business are reflected in our unaudited condensed consolidated statements of operations as discontinued operations for all periods presented. Additionally, current and non-current assets and liabilities of discontinued operations are reflected in the unaudited condensed consolidated balance sheets for both periods presented.

On April 30, 2025, the Company sold the equipment, workforce and customer list of the ISBM division of Big 3 Precision Mold Service, Inc. ISBM, which is located in Centralia, Illinois, is an injection stretch blow mold toolmaker.

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Summarized Financial Information of Discontinued Operations

The following table represents income (loss) from discontinued operations, net of tax:

	Three Months Ended
	March 29, 2025			March 30, 2024
	(unaudited)			(unaudited)
Net sales	$	3,935,599		$	3,304,849
Cost of products sold		(2,947,478	)		(2,562,277	)
Gross margin		988,121			742,572

Selling and administrative expenses		(787,067	)		(815,305	)
Operating Income (Loss)		201,054			(72,733	)

Other income		-			358
Interest expense		(154,367	)		(169,007	)
Income (Loss) from discontinued operations before income taxes		46,687			(241,382	)

Income tax (expense) benefit		(9,809	)		53,537
Income (Loss) from discontinued operations, net of tax	$	36,878		$	(187,845	)

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The following table represents the assets and liabilities from discontinued operations:

	March 29, 2025		December 28, 2024
	(unaudited)
Cash	$	1,176,488	$	833,141
Accounts receivable		3,706,345		2,533,357
Inventory		768,968		784,485
Prepaid expenses		592,044		789,438
Right of use assets		102,487		131,407
Total assets of discontinued operations	$	6,346,332	$	5,071,828

Current assets of discontinued operations¹	$	6,346,332	$	5,071,828
Non-current assets of discontinued operations		-		-
Total assets of discontinued operations	$	6,346,332	$	5,071,828

Accounts payable	$	711,952	$	756,842
Accrued compensation and other accrued expenses		1,541,199		1,242,812
Current portion of lease liability		107,849		128,670
Other long-term liabilities		7,166		16,249
Total liabilities of discontinued operations	$	2,368,166	$	2,144,573

Current liabilities of discontinued operations¹	$	2,368,166	$	2,144,573
Non-current liabilities of discontinued operations		-		-
Total liabilities of discontinued operations	$	2,368,166	$	2,144,573

¹The total assets and liabilities of discontinued operations are presented as current in the March 29, 2025 and December 28, 2024 balance sheet as we expect to sell the discontinued operations and collect proceeds within one year of such dates.

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Note C – Earnings Per Share

The denominators used to calculate earnings per share are as follows:

	Three Months Ended
	March 29, 2025		March 30, 2024
Basic:
Weighted average shares outstanding		6,138,832		6,215,673

Diluted:
Weighted average shares outstanding		6,138,832		6,215,673
Dilutive stock appreciation rights		7,953		39,727
Denominator for diluted earnings per share		6,146,785		6,255,400

Note D – Fair Value of Instruments and Fair Value Measurements

The Company incurs certain manufacturing, marketing, and selling costs in international markets in local currency. Accordingly, earnings and cash flows are exposed to market risk from changes in foreign currency exchange rates relative to the U.S. dollar, the Company’s reporting currency. The Company has a program in place that is designed to mitigate the exposure to changes in foreign currency exchange rates. The program includes the use of derivative financial instruments to minimize, for a period of time, the impact on its financial results from changes in foreign exchange rates. The Company utilizes foreign currency forward contracts to hedge the anticipated cash flows from transactions denominated in foreign currencies, namely Mexican pesos. This does not eliminate the impact of the volatility of foreign exchange rates. However, because the Company generally enters into forward contracts twelve to eighteen months out, rates are fixed for a twelve-to-eighteen-month period, thereby facilitating financial planning and resource allocation.

Designated Foreign Currency Hedge Contracts

All of the Company’s designated foreign currency hedge contracts as of March 29, 2025 were cash flow hedges under ASC Topic 815, “Derivatives and Hedging” (“ASC 815”). The Company records the effective portion of any change in the fair value of designated foreign currency hedge contracts in other comprehensive income until the related third-party transaction occurs. Once the related third-party transaction occurs, the Company reclassifies the effective portion of any related gain or loss on the designated foreign currency hedge contracts to earnings. In the event the hedged forecasted transaction does not occur, or it becomes probable that it will not occur, the Company will reclassify the amount of any gain or loss on the related cash flow hedge to earnings at that time. The Company had designated foreign currency hedge contracts outstanding in the contract amount of $7.2 million as of March 29, 2025 and $9.6 million as of December 28, 2024. As of March 29, 2025 a loss of $0.3 million is expected to be reclassified to earnings within the next nine months. All currency cash flow hedges outstanding as of March 29, 2025 mature within nine months.

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Fair Value of Derivative Instruments

The following table presents the effect of the Company’s derivative instruments designated as cash flow hedges under ASC 815 in its unaudited Condensed Consolidated Statements of Operations for the three months ended March 29, 2025:

Derivative Instruments

Amount of Loss Recognized in Accumulated Other Comprehensive Income

Amount of Loss Reclassified from Accumulated Other Comprehensive

Income into Earnings

Location in Condensed Consolidated Statement of Income

Designated foreign currency hedge contracts

(308,204

)

(291,128

)

Cost of products sold

ASC 815 requires all derivative instruments to be recognized at their fair values as either assets or liabilities on the balance sheet. The Company determines the fair value of its derivative instruments using the framework prescribed by ASC 820, “Fair Value Measurements and Disclosures,” by considering the estimated amount it would receive or pay to sell or transfer these instruments at the reporting date. Generally, the Company uses inputs that include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; other observable inputs for the asset or liability; and inputs derived principally from, or corroborated by, observable market data by correlation or other means. As of March 29, 2025, the Company has classified its derivative assets and liabilities within Level 2 of the fair value hierarchy prescribed by ASC 815, as discussed below, because these observable inputs are available for substantially the full term of its derivative instruments.

Level 1	Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

Level 2	Quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability.

Level 3	Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable.

The following tables present the fair value of the Company’s derivative instruments as they appear in its Condensed Consolidated Balance Sheets as of March 29, 2025 and December 28, 2024:

	Location in Condensed Consolidated Balance Sheets	As of March 29, 2025		As of December 28, 2024

Derivative Liabilities:
Designated foreign currency hedge contracts	Other current liabilities	$	308,204	$	505,376

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Note E – Inventories

Inventories consist of the following components:

	March 29, 2025		December 28, 2024

Raw material and component parts	$	21,316,556	$	21,265,221
Work in process		7,547,495		7,529,319
Finished goods		27,265,203		27,199,543
Total inventories ¹	$	56,129,254	$	55,994,083

¹Includes inventory of discontinued operations of $0.8 million and $0.8 million as of March 29, 2025 and December 28, 2024, respectively.

Note F – Goodwill

The aggregate carrying amount of goodwill from continuing operations is approximately $58.6 million as of March 29, 2025. In the first quarter of 2025, there was no write-off of goodwill. See Note B – Discontinued Operations for further discussion.

The Company evaluates its reporting units for impairment annually in December, or more frequently if events or circumstances indicate it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Such events and circumstances could include, among other things, increased competition or unexpected loss of market share, significant adverse changes in the markets in which the Company operates, or unexpected business disruptions. The Company tests reporting units for impairment by comparing the estimated fair value of each reporting unit with its carrying amount. If the carrying amount of a reporting unit exceeds its estimated fair value, the Company records an impairment loss based on the difference between fair value and carrying amount not to exceed the associated carrying amount of goodwill. Determining the fair value of a reporting unit involves the use of significant estimates and assumptions. The values assigned to the key assumptions represent management’s assessment of future trends in the relevant industry and have been based on historical data from both external and internal sources.

Note G – Leases

The Company presents right-of-use (ROU) assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months, in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2016-02, Leases. The Company accounts for non-lease components as part of the lease component to which they relate. Lease accounting involves significant judgements, including making estimates related to the lease term, lease payments, and discount rate.

The Company has operating leases for buildings, warehouses, and office equipment. The Company determines whether an arrangement is, or contains, a lease at contract inception. An arrangement contains a lease if the Company has the right to direct the use of and obtain substantially all the economic benefits of an identified asset. ROU assets and lease liabilities are recognized at lease commencement based on the present value of lease payments over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. Most leases include one or more options to renew. The exercise of lease renewal options is at our sole discretion. All options to extend, when it is reasonably certain the option will be exercised, have been included in the calculation of the ROU asset and lease liability.

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Currently, the Company has 19 operating leases with a lease liability of $18.1 million and 6 finance leases with a lease liability of $3.7 million as of March 29, 2025. The terms and conditions of the leases are determined by the individual agreements. The leases do not contain residual value guarantees, restrictions, or covenants that could cause the Company to incur additional financial obligations. There are no related party lease transactions. There are no leases that have not yet commenced that could create significant rights and obligations for the Company.

The future payments (in millions) due under non-cancelable operating and finance leases as of March 29, 2025 are as follows:

	Operating			Finance
2025	$	3.0		$	0.6
2026		3.7			0.8
2027		3.3			0.8
2028		2.9			0.7
2029		2.6			0.7
thereafter		5.0			1.0
		20.5			4.6
Less effects of discounting		(2.4	)		(0.9	)
Lease liabilities recognized¹	$	18.1		$	3.7

¹ includes 0.1 million operating lease payments attributable to discontinued operations.

As of March 29, 2025, the weighted average lease term for all operating and finance leases was 5.9 and 6.0 years, respectively. As of March 29, 2025, the weighted average discount rate associated with operating and finance leases was 6.8% and 6.4%, respectively, as of such date.

Note H – Debt

On June 16, 2023, the Company entered into a credit agreement with the lending institutions named therein (the "Lenders"), TD Bank, N.A., as an LC issuer, the swing line lender and as the administrative agent, TD Securities (USA) LLC, as sole arranger and sole bookrunner, and Bank of America, N.A. and Wells Fargo Bank, National Association, as co-syndication agents (the “Credit Agreement”), that included a $60 million term portion and a $30 million revolving commitment portion. In April 2025, the Company entered into an amendment to the Credit Agreement that increased the revolving commitment portion to $50 million. The proceeds of the term loan were used to repay the Company’s remaining outstanding term loan and to terminate its credit facility with Santander Bank, N.A. (approximately $59 million). The term loan portion of the credit facility requires quarterly principal payments of (i) $750,000 beginning on September 30, 2023 through June 30, 2025, (ii) $1,125,000 beginning on September 30, 2025 through June 30, 2027, and (iii) $1,500,000 beginning on September 30, 2027 through March 31, 2028, with the balance of the term loan payable on the maturity date of June 16, 2028. Amounts outstanding under the revolving portion of the credit facility are generally due and payable on the expiration date of the Credit Agreement (June 16, 2028). The Company can elect to prepay some or all of the outstanding balance from time to time without penalty. A commitment fee is payable on the unused portion of the revolving credit facility based on the Company’s consolidated ratio of net debt to adjusted EBITDA from time to time. Currently, the commitment fee is 0.25%. The Company has $1.3 million of outstanding borrowings under the revolving commitment portion of the credit facility as of March 29, 2025.

The term loan bears interest at a variable rate based on the Term Secured Overnight Financing Rate (“SOFR”), plus an adjustment of ten basis points, plus an applicable margin of 1.875% to 2.625%, depending on the Company’s senior net leverage ratio. Borrowings under the revolving portion bear interest at a variable rate based on, at the Company’s election, a base rate plus an applicable margin of 0.875% to 1.625% or SOFR, plus an adjustment of ten basis points, plus an applicable margin of 1.875% to 2.625%, with such margins determined based on the Company’s senior net leverage ratio. The Company’s obligations under the Credit Agreement are secured by a lien on certain of the Company’s and its subsidiaries’ assets pursuant to a Pledge and Security Agreement, dated as of June 16, 2023, with TD Bank N.A., as administrative agent.

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The Company’s loan covenants under the Credit Agreement require the Company to maintain a senior net leverage ratio not to exceed 3.5 to 1. In addition, the Company is required to maintain a fixed charge coverage ratio to be not less than 1.25 to 1. The Company was in compliance with all its covenants under the Credit Agreement on March 29, 2025, and through the date of filing this Form 10-Q.

Note I - Stock Options and Awards

On February 19, 2020, the Board of Directors of the Company (the “Board”) adopted The Eastern Company 2020 Stock Incentive Plan (the “2020 Plan”). On April 29, 2020, at the Company’s 2020 Annual Meeting of Shareholders, the shareholders of the Company approved and adopted the 2020 Plan. The Company has no other existing plan pursuant to which equity awards may be granted.

Restricted stock unit awards may be granted to participants under the 2020 Plan with restrictions determined by the Compensation Committee of the Board. During the first three months of 2025 and 2024, the Company granted stock awards with respect to 35,856 and 0 shares of Company common stock, respectively, that were subject to the meeting of performance measurements or time-based. For the first three months of 2025, the Company used fair market value to determine the associated expense with stock awards.

Incentive stock options granted under the 2020 Plan must have exercise prices that are not less than 100% of the fair market value of the Company’s common stock on the dates the stock options are granted. Under the 2020 Plan, non-qualified stock options granted to participants will have exercise prices determined by the Compensation Committee of the Board. The Company issued 48,240 and 0 options during the first three months of 2025 and 2024, respectively. For the first three months of 2025, the Company used several assumptions which included an expected term of 3 years, volatility deviation of 40.34% and a risk-free rate of 4.34% to determine the expense associated with options.

Stock-based compensation (income) expense, including forfeitures, in connection with options and stock awards previously granted to employees was approximately $(153,000) and $434,000 in the first quarter of 2025 and the first quarter of 2024, respectively.

As of March 29, 2025, there were 873,631 shares of Company common stock reserved and available for future grant under the 2020 Plan.

The following tables set forth the outstanding options for the period specified:

	Three Months Ended					Year Ended
	March 29, 2025					December 28, 2024
	Units			Weighted Average Exercise Price		Units			Weighted Average Exercise Price
Outstanding at beginning of period		25,116		$	28.18		13,000		$	24.19
Issued		48,240			27.88		53,568			28.69
Expired		-			-		(9,000	)		26.30
Exercised		-			-		(2,500	)		20.20
Forfeited		(8,600	)		28.69		(29,952	)		28.69
Outstanding at end of period		64,756			27.89		25,116			28.18

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Stock Options Outstanding and Exercisable
Range of Exercise Prices	Outstanding as of March 29, 2025		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Exercisable as of March 29, 2025		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price

$20.20 - $28.69		64,756		4.6	$	27.89		1,500		0.1	$	20.20

The following tables set forth the outstanding stock awards for the period specified:

	Three Months Ended			Year Ended
	March 29, 2025			December 28, 2024
	Shares			Shares
Outstanding at beginning of period		39,592			89,400
Issued		35,856			38,448
Exercised		(4,579	)		(38,534	)
Forfeited		(15,474	)		(49,722	)
Outstanding at end of period		55,395			39,592

As of March 29, 2025, outstanding SARs and stock awards had an intrinsic value of $1,450,000.

Note J – Share Repurchase Program

On August 21, 2023, the Company announced that the Board of Directors of the Company had approved a share repurchase program authorizing the Company to repurchase up to 200,000 shares of the Company’s common stock through August 20, 2028. The Company’s share repurchase program does not obligate it to acquire the Company’s common stock at any specific cost per share. Under this program, the Company was authorized to repurchase shares in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. Below is a summary of the Company’s share repurchases during the first quarter of 2025 under the share repurchase program. As of March 29, 2025, no shares remained available for repurchase under the authorization.

Period	Total Number of Shares Purchased		Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Maximum Number of Shares that may yet be Purchased Under the Plans or Programs
December 29, 2024 – February 1, 2025		20,000	$	27.81		20,000		30,587

February 2, 2025 – March 1, 2025		14,843		27.95		14,843		15,744

March 2, 2025 – March 29, 2025		15,744		27.30		15,744		0

Total		50,587	$	27.69		50,587		0

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Note K – Revenue Recognition

The Company’s revenues result from the sale of goods and services and reflect the consideration to which the Company expects to be entitled. The Company records revenues in accordance with FASB Accounting Standards Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers.” The Company has defined purchase orders as contracts in accordance with ASC Topic 606. For its customer contracts, the Company identifies its performance obligations, which are delivering goods or services, determines the transaction price, allocates the contract transaction price to the performance obligations (when applicable), and recognizes the revenue when (or as) the performance obligation is transferred to the customer. A good or service is transferred when the customer obtains control of that good or service. The Company’s revenues are recorded at a point in time from the sale of tangible products. Revenues are recognized when products are shipped.

Customer volume rebates, product returns, discount and allowance are variable considerations and are recorded as a reduction of revenue in the same period that the related sales are recorded. The Company has reviewed the overall sales transactions for variable consideration and has determined that these costs are not material.

The Company has no future performance obligations and does not capitalize costs to obtain or fulfill contracts.

Note L - Income Taxes

The Company files income tax returns in the U.S. at the federal and state levels, and in foreign jurisdictions. With limited exceptions, the Company is no longer subject to U.S. federal, state, and local income tax examinations by tax authorities for years before 2020 and is no longer subject to non-U.S. income tax examinations by foreign tax authorities for years prior to 2018.

The total amount of unrecognized tax benefits could increase or decrease within the next 12 months for several reasons, including the closure of federal, state, and foreign tax years by expiration of the statute of limitations and the recognition and measurement considerations under FASB ASC Topic 740, “Income Taxes.” There have been no significant changes to the value of unrecognized tax benefits during the three months ended March 29, 2025. The Company believes that it is reasonably possible that the total amount of unrecognized tax benefits will not increase or decrease significantly over the next twelve months.

Note M - Retirement Benefit Plans

The Company has four non-contributory defined benefit pension plans covering most U.S. employees. All of these pension plans are frozen and participants in these plans have not accrued benefits since the date on which these plans were frozen. Plan benefits are generally based upon age at retirement, years of service and, for the plan covering salaried employees, the level of compensation. The Company also sponsors unfunded non-qualified supplemental retirement plans that provide certain former officers with benefits in excess of limits imposed by federal tax law.

The Company also provides health care and life insurance for retired salaried employees in the United States who meet specific eligibility requirements.

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Significant disclosures relating to these benefit plans for the first quarter of fiscal years 2025 and 2024 are as follows:

	Pension Benefits
	Three Months Ended
	March 29, 2025			March 30, 2024
Service cost	$	177,462		$	178,003
Interest cost		951,097			966,702
Expected return on plan assets		(1,059,936	)		(1,099,035	)
Amortization of the net loss		290,615			327,365
Net periodic benefit cost	$	359,238		$	373,035

	Other Postretirement Benefits
	Three Months Ended
	March 29, 2025			March 30, 2024
Service cost	$	2,125		$	3,574
Interest cost		11,683			12,951
Expected return on plan assets		(4,780	)		(4,684	)
Amortization of prior service cost		(832	)		1,060
Amortization of the net loss		(23,093	)		(19,567	)
Net periodic benefit (gain)	$	(14,897	)	$	(6,666	)

The Company’s funding policy with respect to its qualified plans is to contribute at least the minimum amount required by applicable laws and regulations. In fiscal year 2025, the Company expects to make cash contributions to its qualified pension plans of approximately $2,900,000 and approximately $42,000 into its other postretirement plan. As of March 29, 2025, the Company has contributed $1,016,000 to its pension plans and $7,000 to its postretirement plan in fiscal year 2025 and expects to make the remaining contributions as required during the remainder of the fiscal year.

The Company has a contributory savings plan under Section 401(k) of the Internal Revenue Code (the “401(k) Plan”) covering substantially all U.S. non-union employees. The 401(k) Plan allows participants to make voluntary contributions from their annual compensation on a pre-tax basis, subject to limitations under the Internal Revenue Code. The 401(k) Plan provides for contributions by the Company at its discretion.

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The Company made contributions to the 401(k) Plan as follows:

	Three Months Ended
	March 29, 2025		March 30, 2024
Regular matching contribution	$	306,639	$	285,563
Transitional credit contribution		23,865		28,906
Non-discretionary contribution		108,492		110,890
Total contributions for the period	$	438,996	$	425,359

Note N - Recent Accounting Pronouncements

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740), which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit disaggregated between domestic and foreign and (3) income tax expense or benefit from continuing operations disaggregated by federal, state, and foreign. The update also requires entities to disclose their income tax payments to various jurisdictions. This standard is effective for fiscal years beginning after December 15, 2024. We do not expect this new standard to have a significant impact on our disclosures.

The Company has implemented all new accounting pronouncements that are in effect and that could impact its consolidated financial statements and does not believe that there are any other new accounting pronouncements that have been issued, but are not yet effective, that might have a material impact on the consolidated financial statements of the Company.

Note O - Concentration of Risk

Credit Risk

Credit risk is the potential financial loss resulting from the failure of a customer or counterparty to settle its financial and contractual obligations to the Company, as and when they become due. The primary credit risk for the Company is its accounts receivable due from customers. The Company has established credit limits for customers and monitors their balances to mitigate the risk of loss. As of March 29, 2025, there was one significant concentration of credit risk with a customer, that represented 13% of our net accounts receivable. As of December 28, 2024, there was one customer that represented 14% of the Company’s net accounts receivable. The maximum exposure to credit risk is primarily represented by the carrying amount of the Company’s accounts receivable.

The Company has deposits that exceed amounts up to $250,000 that are insured by the Federal Deposit Insurance Corporation (FDIC), but the Company does not consider this a significant concentration of credit risk based on the strength of the financial institution.

Interest Rate Risk

The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s debt under the Credit Agreement, which bears interest at variable rates based on SOFR, plus an adjustment of ten basis points, plus an applicable margin of 1.875% to 2.625%, depending on the Company’s senior net leverage ratio.

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Note P - Segment Information

The Company has one reportable segment, and the Chief Executive Officer is the Company’s chief operating decision maker (CODM). The CODM uses the following reported measures to assess performance and make decisions on resource allocation throughout the Company.

	Engineered Solutions Segment
	March 29. 2025			March 30, 2024

Net Sales	$	63,312,774		$	64,624,238
Less:
Material cost		(33,418,246	)		(34,121,028	)
Labor cost		(3,125,986	)		(2,922,443	)
Other variable and fixed overhead¹		(12,581,070	)		(12,127,240	)
Gross Margin		14,187,472			15,453,527
Product development expense		(1,109,186	)		(1,359,797	)
Selling and administrative expenses		(9,847,121	)		(10,683,652	)
Operating Profit	$	3,231,165		$	3,410,078

¹Other variable and fixed overhead items included in segment operating profit include manufacturing salaries, indirect labor, insurance, lease expense, depreciation, and other overhead expenses

Note Q– Business Acquisition

On February 14, 2025, the Company acquired certain assets under asset and real estate purchase agreements from Centralia Industrial Painting, Inc. and Ronald R. Rainwater, respectively. These assets are held in our Big 3 Precision Products, Inc. (“Big 3”) subsidiary. We expect the acquisition will enable the Company to become more competitive with respect to cost and quality of the products sold by Big 3.

The acquisition was accounted as a business combination (ASC Topic 805). The acquired assets are included in the consolidated financial statements of the Company from the effective date of the acquisition. The excess of the purchase price paid over the fair market value of the net assets acquired of $0.1 million has been recorded as goodwill.

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ITEM 2 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion is intended to highlight significant changes in the financial position and results of operations of The Eastern Company (together with its consolidated subsidiaries, the “Company,” “we,” “us” or “our”) for the three months ended March 29, 2025. This Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the Consolidated Financial Statements and Notes thereto for the fiscal year ended December 28, 2024 and the related Management’s Discussion and Analysis of Financial Condition and Results of Operations, both of which are contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2024, which was filed with the Securities and Exchange Commission (the “SEC”) on March 11, 2025 (the “2024 Form 10-K”).

The Company’s fiscal year is a 52-53-week fiscal year ending on the Saturday nearest to December 31. References in this Quarterly Report on Form 10-Q for the quarterly period ended March 29, 2025 (this “Form 10-Q”) to 2024, the 2024 fiscal year or fiscal 2024 mean the 52-week period ended on December 28, 2024, and references to 2025, the 2025 fiscal year or fiscal 2025 mean the 53-week period ending on January 3, 2026. In a 52-week fiscal year, each quarter has 13 weeks. References to the first quarter of 2024, the first fiscal quarter of 2024, the first three months of 2024 or the three months ended March 30, 2024 mean the 13-week period from December 31, 2023 to March 30, 2024. References to the first quarter of 2025, the first fiscal quarter of 2025, the first three months of 2025 or the three months ended March 29, 2025 mean the 13-week period from December 29, 2024 to March 29, 2025.

Safe Harbor for Forward-Looking Statements

Statements contained in this Form 10-Q that are not based on historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of forward-looking terminology such as “would,” “should,” “could,” “may,” “will,” “expect,” “believe,” “estimate,” “anticipate,” “intend,” “continue,” “plan,” “potential,” “opportunities,” or similar terms or variations of those terms or the negative of those terms. There are many factors that affect the Company’s business and the results of its operations and that may cause the actual results of operations in future periods to differ materially from those currently expected or anticipated. These factors include:

	·	risks associated with doing business overseas, including fluctuations in exchange rates and the inability to repatriate foreign cash, the impact on cost structure and on economic conditions as a result of actual and threatened increases in trade tariffs and the impact of political, economic, and social instability;
	·	the impact of tariffs, trade sanctions or political instability on the availability or cost of raw materials;
	·	the impact of higher raw material and component costs and cost inflation, supply chain disruptions and shortages, particularly with respect to steel, plastics, scrap iron, zinc, copper, and electronic components;
	·	delays in delivery of our products to our customers;
	·	the impact of global economic conditions and interest rates, and more specifically conditions in the automotive, construction, aerospace, energy, oil and gas, transportation, electronic, and general industrial markets, including the impact, length and degree of economic downturns on the customers and markets we serve and demand for our products, reductions in production levels, the availability, terms and cost of financing, including borrowings under credit arrangements or agreements, the potential impact of bank failures on our ability to access financing or capital markets, and the impact of market conditions on pension plan funded status;
	·	restrictions on operating flexibility imposed by the agreement governing our credit facility;
	·	the inability to achieve the savings expected from global sourcing of materials;
	·	lower-cost competition;
	·	our ability to design, introduce and sell new or updated products and related components;
	·	market acceptance of our products;
	·	the inability to attain expected benefits from acquisitions or the inability to effectively integrate acquired businesses and achieve expected synergies;
	·	costs and liabilities associated with environmental compliance;
	·	the impact of climate change, natural disasters, geopolitical events, and public health crises, including pandemics and epidemics, and any related Company or government policies or actions;
	·	military conflict (including the Russia/Ukraine conflict, the conflict in the Middle East, the possible expansion of such conflicts and geopolitical consequences) or terrorist threats and the possible responses by the U.S. and foreign governments;
	·	failure to protect our intellectual property;
	·	cyberattacks; and
	·	materially adverse or unanticipated legal judgments, fines, penalties, or settlements.

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The Company is also subject to other risks identified and discussed in this Management’s Discussion and Analysis of Financial Condition and Results of Operations, in Part I, Item 1A, Risk Factors, and in Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, of the 2024 Form 10-K, and that may be identified from time to time in our quarterly reports on Form 10-Q, current reports on Form 8-K and other filings we make with the SEC.

Although the Company believes it has an appropriate business strategy and the resources necessary for its operations, future revenue and margin trends cannot be reliably predicted, and the Company may alter its business strategies to address changing conditions. Also, the Company makes estimates and assumptions that may materially affect reported amounts and disclosures. These relate to valuation allowances for accounts receivable and excess and obsolete inventories, accruals for pensions and other postretirement benefits (including forecasted future cost increases and returns on plan assets), provisions for depreciation (estimating useful lives), uncertain tax positions, and, on occasion, accruals for contingent losses. The Company undertakes no obligation to update, alter, or otherwise revise any forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future events, or otherwise, except as required by law.

Recent Developments

The U.S. tariffs implemented in March 2025 did not materially impact our results for the first quarter 2025. While the long-term effects remain uncertain, we continue to closely monitor the evolving tariff policy environment which presents a mix of impacts, with the potential for higher pricing, as well as higher product and operating costs. See Part I, Item 1A, Risk Factors in the 2024 Form 10-K for a discussion regarding tariff-related risks.

In the third quarter of 2024, we determined that the Big 3 Mold business met the criteria to be held for sale and that the assets held for sale qualify for discontinued operations. As such, the financial results of the Big 3 Mold business are reflected in our unaudited condensed consolidated statements of operations as discontinued operations for all periods presented. Additionally, current and non-current assets and liabilities of discontinued operations are reflected in the unaudited condensed consolidated balance sheets for both periods presented.

The following analysis excludes discontinued operations.

Net sales in the first quarter of 2025 decreased 2% to $63.3 million from $64.6 million in the corresponding period in 2024. Sales decreased in the first quarter of 2025 due to decreased sales of truck mirror assemblies and truck accessories of $4.2 million and $2.6 million, respectively, offset by increased sales of returnable transport packaging products of $3.1 million. Our backlog as of March 29, 2025 decreased 9% to $85.9 million from $94.0 million as of March 30, 2024, driven by decreased orders for returnable transport packaging products of $6.6 million various truck mirror assemblies of $2.7 million offset by increase a latch and handle assemblies of $1.3 million.

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Net sales of existing products decreased 6% in the first quarter of 2025 compared to the corresponding period in 2024. Price increases and new products increased net sales by 1% in the first quarter of 2025, compared to the corresponding periods in 2024. New products sales included various truck mirror assemblies and handles.

Cost of products sold decreased less than $0.1 million in the first quarter of 2025 compared to the corresponding period in 2024. Additionally, the Company paid tariff costs on China-sourced products of approximately $0.6 million in the first quarter of 2025, compared to $0.7 million in the first quarter of 2024. Most tariffs on China-sourced products have been recovered through price increases.

Gross margin as a percentage of sales was 22.4% in the first quarter of 2025 compared to 23.9% in the corresponding period in 2024. Gross margin for our returnable transport packaging business gained 1% offset by a comparable reduction in our latch and handle assembles business, while gross margin for our mirror assemblies was consistent with the prior comparable period.

Product development expenses decreased $0.3 million in the first quarter of 2025 compared to the corresponding periods in 2024. As a percentage of net sales, product development costs were 2.0% in each period as we continue to invest in new products at our businesses.

Selling, general and administrative expenses decreased $0.8 million, or 8%, in the first quarter of 2025 when compared to the first quarter of 2024 due to lower payroll-related expenses of $0.5 million offset by higher sales commissions of $0.4 million and $0.7 million of other reductions.

Interest expense decreased $0.1 million in the first quarter of 2025 due to lower principal balances, offset by higher interest rates.

Other (expense) income decreased $0.2 million in the first quarter of 2025 compared to the corresponding period in 2024. The decrease is due to $0.1 million of gains on securities transactions in 2024 that did not occur in 2025, and restructuring expenses incurred in 2025.

Net income for the first quarter of fiscal 2025 was $1.9 million, or $0.31 per diluted share compared to net income of $2.1 million, or $0.34 per diluted share, for the comparable period in 2024.

A more detailed analysis of the Company’s results of operations and financial condition follows.

Results of Operations

The following table shows, for the periods indicated, selected line items from the condensed consolidated statements of operations as a percentage of net sales:

	Three Months Ended
	March 29, 2025			March 30, 2024

Net sales		100.0	%		100.0	%
Cost of products sold		77.6	%		76.1	%
Gross margin		22.4	%		23.9	%
Product development expense		1.8	%		2.1	%
Selling and administrative expense		15.5	%		16.5	%
Operating Profit		5.1	%		5.3	%

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The following table shows the change in sales and operating profit for the first quarter of 2025 compared to the first quarter of 2025 (dollars in thousands):

	Three
	Months Ended
	March 29, 2025

Net Sales	$	(1,311	)

Volume		(4.8	)%
Price		(1.0	)%
New products		3.8	%
		(2.0	)%

Operating Profit	$	(179	)

Liquidity and Sources of Capital

The Company used $1.9 million of cash in operations during the first three months of 2025 compared to generating $2.8 million during the first three months of 2024. The usage in cash flow from operations in the first three months of 2025 compared to the cash generation from operations in the corresponding period in 2024 was primarily due to timing of annual vendor deposit and 2024 bonus payments offset by improved customer collection performance and lower sales.

Additions to property, plant, and equipment were $0.8 million and $1.7 million for the first three months of 2025 and 2024, respectively. As of March 29, 2025, there was approximately $0.6 million of outstanding commitments for capital expenditures.

The following table shows key financial ratios as of the dates specified:

	March 29, 2025			March 30, 2024			Fiscal Year 2024
Current Ratio		2.8			2.7			2.6
Average days' sales in accounts receivables		49			58			50
Inventory Turnover		3.5			3.6			3.7
Total debt to shareholders' equity		34.3	%		32.1	%		35.0	%

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The following table shows important liquidity measures as of the balance sheet date for each specified period or for the period, as applicable (in millions):

	March 29, 2025		March 30, 2024		Fiscal Year 2024
Held in the United States		6.6		5.9		12.4
Held by a foreign subsidiary		1.3		1.1		1.6
		7.9		7.0		14.0

SEC Form 10-Q filed by Eastern Company