Alight, Inc. (ALIT) Balance Sheet

Goodwill fell from $3.2B to $83M across the period, which suggests impairment charges absorbed most of the equity base rather than operating decline alone. Retained earnings remain deeply negative at about -$3.8B, indicating accumulated losses that the business has not reversed. The trajectory points to a balance sheet that is structurally smaller and less cushioned against further earnings pressure.

Debt has been stable in absolute terms at about $2.1B, so the rising D/E ratio reflects a shrinking equity denominator rather than new borrowing. Total liabilities of roughly $3.2B against assets of $4.2B leave limited headroom for further value reductions. Investors should monitor refinancing terms and covenant headroom given that debt now represents a much larger share of the capital structure.

The current ratio of 1.42 appears adequate on a headline basis, but cash represents only a small fraction of total liabilities. Given continued operating losses and negative free cash flow in recent quarters, the cash balance may be less durable than the current ratio implies. This warrants further investigation into the timing of debt maturities and working capital movements.

The drop in goodwill from over $3B signals that prior acquisitions have been substantially written down, reducing the intangible share of assets. Net PP&E has moved around between $36M and $439M, a volatility that may reflect reclassifications or disposals rather than steady capital investment. The remaining asset mix leans toward a smaller, less intangible-heavy base that may have lower recovery value in a stressed scenario.

A drop of roughly 78% in deferred revenue over three quarters reduces the visibility of future recognized revenue. Since revenue has also been contracting, this pattern is consistent with softer bookings or shorter contract durations. Investors should look for stabilization in this line before drawing conclusions about the revenue base.