Autoliv, Inc. (ALV) Balance Sheet

The balance sheet has shown remarkable consistency, with total assets fluctuating within a narrow band of $7.8B to $8.6B over ten quarters. Equity has grown modestly from $2.3B in early 2024 to $2.5B in 2026Q2, driven by retained earnings accumulation. This stability suggests a mature business with limited expansion or divestiture activity, aligning with the low single-digit revenue growth observed in the income statement.

Debt-to-equity has stayed in a tight range of 0.85 to 1.04 over the past ten quarters, reflecting a consistent capital structure. The absolute debt level has not increased materially, suggesting that the company is not aggressively levering up for growth. However, with cash balances often below $400M, the net debt position is substantial, and the company's ability to service debt depends on stable cash flows, which have shown volatility in working capital.

The asset base is dominated by property, plant, and equipment, which has remained steady around $2.5B, indicating ongoing investment in manufacturing capacity. Goodwill has been flat at $1.4B, suggesting no major acquisitions or impairments. The relatively high proportion of tangible assets aligns with an industrial manufacturer, but also implies that depreciation and maintenance capex are significant ongoing costs.

Equity has grown primarily through retained earnings, which have risen steadily despite quarterly fluctuations in net income. The company has not engaged in significant share repurchases or dilution, as evidenced by stable share counts. However, the prior cash flow analysis noted that shareholder returns exceeded free cash flow in 2026Q2, which could pressure equity if sustained.

The current ratio has been consistently below 1.1, and even fell to 0.93 in 2025Q2, suggesting that current liabilities exceed current assets. This is typical for manufacturing firms with efficient working capital management, but it leaves little room for unexpected shocks. Cash balances have been volatile, ranging from $225M to $604M, and the low cash position relative to debt highlights a reliance on operating cash flow and credit availability.