ADC Therapeutics S.A. (ADCT) Balance Sheet

The divergence between a shrinking asset base and sticky liabilities is the defining trajectory here: cash has declined roughly $81M over the period while total debt has swung upward to $417.1M in the latest quarter, implying the company has been substituting borrowing for depleting cash reserves. Given zero goodwill and negligible PPE, almost the entire balance sheet is financial assets against financing liabilities, meaning the trajectory is entirely a function of burn rate and capital markets access rather than operating asset productivity.

The sawtooth pattern in reported debt — dropping to the $117M-124M range in several quarters then spiking above $430M — suggests ADCT is leaning on a credit facility for interim liquidity rather than carrying permanent leverage, which reduces refinancing cliffs but exposes the company to lender discretion at each renewal. With negative book equity, conventional leverage ratios are undefined, meaning lenders' willingness to keep the facility available effectively substitutes for the equity cushion that normally supports credit; investors should monitor whether peak debt levels trend upward over time, as the latest print nears the series high.

Although a 3.03 current ratio would be comfortable for most businesses, the context matters: with recurring operating losses and negligible capex, current assets are effectively the runway, and the steady drawdown from $300.1M to $219.1M of cash over two years implies limited room for error without additional financing. The sharp drop in the current ratio in 2026Q2 coinciding with the jump in total debt suggests current liabilities have ballooned with facility draws, shortening the effective duration of the liquidity buffer even if the headline ratio still screens as adequate.

The $1.7B accumulated deficit dwarfs the $279.4M asset base, meaning historical losses have consumed capital roughly six times the size of the current balance sheet; this is consistent with the heavy stock-based compensation identified in ADCT's cash flow disclosures, which dilutes equity holders without consuming cash. The swing in equity from -$238.2M in 2025Q3 back to -$185.8M by 2025Q4 before deteriorating again suggests episodic equity issuances are periodically patching the deficit, but the lack of a durable equity floor leaves the capital structure dependent on continued market access.