Clean Harbors, Inc. (CLH) Balance Sheet

The growth in total assets has been accompanied by a steady rise in goodwill from about $1.5B to $1.8B, which indicates that a meaningful share of the asset base reflects purchased rather than built value. Equity grew more slowly than liabilities in recent periods, suggesting the expansion has been partly funded by borrowing. Investors should monitor whether the acquired businesses generate returns that justify the incremental goodwill and debt load.

Total debt held near $3.0B to $3.4B across most of the period, implying leverage stayed elevated relative to equity even as the ratio improved. The anomalous 2025Q3 debt figure suggests a data or reporting discontinuity that warrants further investigation before drawing firm conclusions about deleveraging. Refinancing exposure and the sustainability of current debt levels depend heavily on whether free cash flow can absorb interest costs through the cycle.

The decline in the current ratio alongside a cash balance that peaked at $826.3M in 2025Q4 and fell back to $423.5M indicates cash was deployed, likely toward acquisitions. Cash remains a modest buffer relative to total liabilities of about $5.2B. Investors should view the current ratio trend as a signal of tightening working capital headroom rather than a clear weakening of solvency.

Rising PPE indicates reinvestment in physical infrastructure consistent with a waste-treatment and industrial services operator, which ties into the elevated capex intensity seen in recent quarters. Goodwill now represents a substantial portion of total assets, which elevates impairment risk if acquired operations underperform. The combination of heavy fixed and intangible assets implies that returns on invested capital will depend on sustained utilization and disciplined acquisition pricing.