Dana Incorporated (DAN) Balance Sheet

The move from a 0.76 to 3.82 debt-to-equity ratio reflects both a roughly $2.0B step-up in total debt between early 2026 and late 2025 and a sharp erosion of equity, driven largely by retained earnings falling from $1.3B to $256.0M. This pattern suggests the deleveraging visible through 2024 and early 2025 has not persisted, and investors should monitor whether the $1.7B of debt reported in 2026Q3 reflects a durable reset or a transitional position. Equity recovery in the most recent quarters is positive but remains small relative to the liability base.

Total debt of $3.5B against equity that fell to $861.0M in 2025Q4 places Dana's leverage well above the 0.21x to 1.56x D/E range reported by peers such as AXL, BWA, MOD, ALSN, and VC. The subsequent reduction to $1.5B to $1.7B in 2026 suggests meaningful repayment or restructuring, but refinancing exposure and the sensitivity of coverage to weak operating margins warrant further investigation. Investors should treat the leverage improvement as provisional until sustained earnings support it.

Net PP&E held roughly flat near $2.1B to $2.6B, suggesting a stable, capital-intensive manufacturing base consistent with the moderate capex levels reported in cash flow data. The steep goodwill decline points to impairment or divestiture activity that has reduced intangible exposure, which lowers future impairment risk but also implies past acquisition assumptions did not fully hold. The asset mix is therefore increasingly tangible and asset-heavy.

The current ratio at 1.13 in 2026Q3, the lowest in the ten-quarter window, suggests short-term obligations are closing in on current assets even as cash has fallen from $483.0M to $321.0M in recent periods. Given that quarterly losses and volatile operating cash conversion have been reported, this liquidity cushion may prove insufficient if earnings weaken further. Investors should monitor cash burn against scheduled debt maturities.