The company's liquidity position has tightened, with the current ratio falling from 1.61 in 2023Q4 to 0.95 in 2026Q1, indicating a diminished buffer for short-term obligations.
| Total Current Assets | 881.5M | 897.2M | 948.2M | 1.25B | 1.25B | 1.12B |
| Cash & Short-Term Investments | 147.5M | 174.6M | 118.5M | 108.6M | 112M | 94.6M |
| Cash Only | 147.5M | 174.6M | 118.5M | 108.6M | 112M | 94.6M |
| Short-Term Investments | 0 | 0 | 0 | 0 | 0 | 0 |
| Accounts Receivable | 619.6M | 589.7M | 694M | 1.01B | 1.05B | 949.8M |
| Days Sales Outstanding | 87.99 | 79.03 | 93.94 | 129.76 | 135.27 | 113.39 |
| Inventory | 0 | 0 | 0 | 0 | 0 | 0 |
| Days Inventory Outstanding | - | - | - | - | - | - |
| Other Current Assets | 114.4M | 132.9M | 77.2M | 97.6M | 50.8M | 73.1M |
| Total Non-Current Assets | 1.8B | 1.82B | 2.63B | 3.08B | 3.04B | 3.25B |
| Property, Plant & Equipment | 157.1M | 149.5M | 156.3M | 172.6M | 164.9M | 162.6M |
| Fixed Asset Turnover | 17.97x | 18.22x | 17.25x | 16.47x | 17.20x | 18.80x |
| Goodwill | 950.8M | 960M | 1.71B | 1.74B | 2B | 2.08B |
| Intangible Assets | 601.7M | 622M | 655.7M | 728.1M | 823.3M | 935.5M |
| Long-Term Investments | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Current Assets | 86.1M | 80.8M | 103.4M | 438.5M | 54.3M | 70.8M |
| Total Assets | 2.68B | 2.72B | 3.58B | 4.33B | 4.29B | 4.37B |
| Asset Turnover | 0.99x | 1.00x | 0.75x | 0.66x | 0.66x | 0.70x |
| Asset Growth % | -83.79% | -24.13% | -17.39% | 1.04% | -1.85% | - |
| Total Current Liabilities | 929.1M | 913.3M | 949.5M | 778.4M | 699M | 826.7M |
| Accounts Payable | 70.8M | 29.7M | 138.2M | 132.9M | 81.5M | 60.5M |
| Days Payables Outstanding | 12.7 | 4.72 | 23.33 | 21.54 | 14.08 | 9 |
| Short-Term Debt | 19.7M | 14M | 74.8M | 26.1M | 0 | 0 |
| Deferred Revenue (Current) | 1.75B | 473.8M | 353.3M | 214.2M | 271.5M | 307M |
| Other Current Liabilities | 357.3M | 395.8M | 129.6M | 185.9M | 150.1M | 178.5M |
| Current Ratio | 0.95x | 0.98x | 1.00x | 1.61x | 1.78x | 1.35x |
| Quick Ratio | 0.95x | 0.98x | 1.00x | 1.61x | 1.78x | 1.35x |
| Cash Conversion Cycle | 75.29 | - | - | - | - | - |
| Total Non-Current Liabilities | 1.23B | 1.24B | 1.27B | 1.84B | 246.3M | 281.4M |
| Long-Term Debt | 55.7M | 54M | 1.05B | 1.57B | 0 | 0 |
| Capital Lease Obligations | 104.4M | 0 | 60.6M | 62.8M | 40.1M | 53.2M |
| Deferred Tax Liabilities | 409.6M | 97.6M | 121.7M | 147.7M | 184.5M | 210.3M |
| Other Non-Current Liabilities | 1.08B | 1.09B | 35.3M | 63.7M | 21.7M | 17.9M |
| Total Liabilities | 2.16B | 2.15B | 2.22B | 2.62B | 945.3M | 1.11B |
| Total Debt | 75.4M | 68M | 1.2B | 1.67B | 63.4M | 77.2M |
| Net Debt | -72.1M | -106.6M | 1.08B | 1.56B | -48.6M | -17.4M |
| Debt / Equity | 0.14x | 0.12x | 0.88x | 0.98x | 0.02x | 0.02x |
| Debt / EBITDA | 1.57x | 1.43x | - | 12.86x | 0.23x | 0.28x |
| Net Debt / EBITDA | -1.50x | -2.25x | - | 12.03x | -0.17x | -0.06x |
| Interest Coverage | -7.33x | -9.75x | -1.22x | 0.56x | 936.00x | 683.00x |
| Total Equity | 525.9M | 563.5M | 1.36B | 1.71B | 3.34B | 3.26B |
| Equity Growth % | -218.7% | -58.64% | -20.52% | -48.72% | 2.51% | - |
| Book Value per Share | 5.77 | 6.18 | 15.22 | 19.30 | 37.81 | 36.88 |
| Total Shareholders' Equity | 525.9M | 563.5M | 1.36B | 1.71B | 3.34B | 3.26B |
| Common Stock | 100K | 100K | 100K | 100K | 0 | 0 |
| Retained Earnings | -1.41B | -1.38B | -397M | -68.5M | 0 | 0 |
| Treasury Stock | 0 | 0 | 0 | 0 | 0 | 0 |
| Accumulated OCI | -195.4M | -170M | -282.9M | -215.5M | -276M | -148.4M |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 |
Eroding equity and liquidity
As reported in recent financial filings, Fortrea's equity base has contracted significantly from $1.7 billion in 2023Q4 to $525.9 million by 2026Q1, reflecting a persistent trend of value destruction that suggests the company is struggling to establish a stable financial foundation as an independent entity.
The rapid decline in equity, coupled with a consistent accumulation of retained earnings deficits, indicates that the company is consuming its capital base to fund ongoing operations. This trajectory warrants caution, as the erosion of net assets may limit the company's future financial flexibility and ability to absorb further operational shocks.
Based on the provided balance sheet data, Fortrea's debt profile has undergone significant volatility, with total debt peaking at $1.7 billion before being reduced to $75.4 million in 2026Q1, a shift that appears to be a strategic attempt to deleverage amidst a backdrop of negative profitability.
While the reduction in total debt is a positive development for the balance sheet, the underlying lack of consistent operating cash flow suggests that this deleveraging may have been achieved through asset sales or capital restructuring rather than organic earnings. Investors should monitor whether this lower debt level is sustainable given the company's current inability to generate positive net income.
According to quarterly balance sheet figures, the current ratio has compressed from 1.61 in 2023Q4 to 0.95 in 2026Q1, indicating that the company's ability to cover short-term obligations with current assets has deteriorated to a level that may leave little room for operational errors.
A current ratio below 1.0 suggests that the company is increasingly reliant on the timely conversion of receivables or external financing to meet its immediate liabilities. This liquidity profile appears vulnerable, particularly if the company's clinical trial backlog experiences further delays or if sponsor payments are deferred.
Based on reported figures, goodwill remains a substantial component of total assets at $950.8 million as of 2026Q1, representing a significant portion of the company's $2.7 billion asset base, which may pose a risk of future impairment charges if operational performance does not improve.
The presence of such high goodwill relative to the company's current market valuation and negative earnings suggests that the carrying value of these intangible assets may be optimistic. Any future write-downs would further erode the already diminished equity base, potentially triggering covenant issues or necessitating further capital raises.
Quick answers to the most common questions about buying FTRE stock.
As of 2025, Fortrea Holdings Inc. (FTRE) had total assets of $2.72B including $897.2M in current assets.
Fortrea Holdings Inc. (FTRE) carries total debt of $68.0M, offset by $174.6M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Fortrea Holdings Inc. (FTRE) has total shareholders' equity (book value) of $563.5M ($6.18 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Fortrea Holdings Inc. (FTRE) reported a current ratio of 0.98x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.