The company's financial risk profile has intensified as the debt-to-equity ratio surged from 0.02 in 2024Q4 to 0.73 in 2026Q1, reflecting a significant increase in leverage.
| Total Current Assets | 929.5M | 976.1M | 618.6M | 612.4M |
| Cash & Short-Term Investments | 268M | 318.8M | 0 | 0 |
| Cash Only | 268M | 318.8M | 0 | 0 |
| Short-Term Investments | 0 | 0 | 0 | 0 |
| Accounts Receivable | 277.2M | 285.3M | 293.8M | 296M |
| Days Sales Outstanding | 49.96 | 50.34 | 49.77 | 50.12 |
| Inventory | 321.3M | 301.6M | 282.9M | 273.3M |
| Days Inventory Outstanding | 97.94 | 98.69 | 99.04 | 96.29 |
| Other Current Assets | 63M | 70.4M | 41.9M | 43.1M |
| Total Non-Current Assets | 2.77B | 2.85B | 4.1B | 2.45B |
| Property, Plant & Equipment | 214.8M | 214.2M | 200.2M | 207.2M |
| Fixed Asset Turnover | 9.99x | 9.66x | 10.76x | 10.40x |
| Goodwill | 1.62B | 1.67B | 2.94B | 1.86B |
| Intangible Assets | 762.5M | 795.2M | 809.6M | 251.8M |
| Long-Term Investments | 0 | 0 | 0 | 0 |
| Other Non-Current Assets | 172.7M | 163.7M | 151M | 133M |
| Total Assets | 3.7B | 3.82B | 4.72B | 3.06B |
| Asset Turnover | 0.47x | 0.54x | 0.46x | 0.70x |
| Asset Growth % | -44.36% | -19.02% | 54.18% | - |
| Total Current Liabilities | 579M | 1.16B | 533.7M | 554.8M |
| Accounts Payable | 248.8M | 263.7M | 254.6M | 233.2M |
| Days Payables Outstanding | 82.36 | 86.29 | 89.13 | 82.16 |
| Short-Term Debt | 0 | 530.4M | 0 | 0 |
| Deferred Revenue (Current) | 165.1M | 0 | 143.1M | 161.1M |
| Other Current Liabilities | 330.2M | 365.6M | 118.6M | 145.4M |
| Current Ratio | 1.61x | 0.84x | 1.16x | 1.10x |
| Quick Ratio | 1.05x | 0.58x | 0.63x | 0.61x |
| Cash Conversion Cycle | 65.54 | 62.74 | 59.68 | 64.25 |
| Total Non-Current Liabilities | 1.55B | 1.03B | 422.9M | 245.4M |
| Long-Term Debt | 1.15B | 618.4M | 0 | 0 |
| Capital Lease Obligations | 0 | 0 | 59.7M | 36.3M |
| Deferred Tax Liabilities | 0 | 0 | 0 | 0 |
| Other Non-Current Liabilities | 404M | 409.2M | 327.4M | 184.5M |
| Total Liabilities | 2.13B | 2.19B | 956.6M | 800.2M |
| Total Debt | 1.15B | 1.15B | 71.7M | 47.1M |
| Net Debt | 880.3M | 830M | 71.7M | 47.1M |
| Debt / Equity | 0.73x | 0.70x | 0.02x | 0.02x |
| Debt / EBITDA | 3.10x | 3.07x | 0.13x | 0.09x |
| Net Debt / EBITDA | 2.37x | 2.22x | 0.13x | 0.09x |
| Interest Coverage | 5.37x | 8.01x | 5.96x | - |
| Total Equity | 1.57B | 1.63B | 3.76B | 2.26B |
| Equity Growth % | -90.76% | -56.57% | 66.44% | - |
| Book Value per Share | 13.83 | 14.41 | 33.30 | 20.06 |
| Total Shareholders' Equity | 1.57B | 1.63B | 3.76B | 2.26B |
| Common Stock | 1.1M | 0 | 0 | 0 |
| Retained Earnings | -1.31B | 0 | 4.25B | 0 |
| Treasury Stock | 0 | 0 | 0 | 0 |
| Accumulated OCI | -310.6M | 0 | -491.3M | -353.2M |
| Minority Interest | 0 | 0 | 0 | 0 |
Goodwill impairment and leverage
According to recent quarterly filings, Ralliant's total equity has contracted from $3.8 billion in 2024Q4 to $1.6 billion in 2026Q1, signaling a significant erosion of the capital base that warrants close monitoring by investors concerned with long-term solvency and structural stability.
The rapid decline in equity, coupled with the emergence of a $1.3 billion deficit in retained earnings, suggests that recent operational losses are directly impairing the company's net worth. This trajectory indicates that the balance sheet is becoming increasingly fragile, potentially limiting the firm's flexibility to navigate future industrial cycles.
As reported in financial statements, Ralliant's debt-to-equity ratio has surged from 0.02 in 2024Q4 to 0.73 in 2026Q1, reflecting a shift toward higher leverage that may constrain the company's ability to service obligations if operating cash flows remain inconsistent.
The transition from a nearly debt-free position to $1.1 billion in total debt suggests a reliance on external financing to bridge operational gaps. Investors should consider whether this leverage is being utilized for strategic growth or merely to sustain liquidity in the face of persistent margin compression.
Based on Ralliant's reported figures, goodwill accounts for $1.6 billion of the $3.7 billion total asset base as of 2026Q1, which represents a substantial portion of the balance sheet and introduces significant risk of future impairment charges if acquisition synergies fail to materialize.
The heavy reliance on intangible assets relative to a modest $214.8 million in net PPE suggests an asset-light model that is highly sensitive to valuation adjustments. This concentration of goodwill may obscure the underlying quality of the company's physical manufacturing capabilities and long-term operational assets.
Data from recent balance sheets indicates that Ralliant's cash position has fluctuated significantly, dropping to $268 million in 2026Q1, which may provide an insufficient buffer given the company's recent history of volatile working capital requirements and inconsistent operational cash generation.
While the current ratio of 1.61 appears adequate on the surface, the underlying instability in cash levels suggests that liquidity could tighten rapidly if operational performance does not improve. The lack of consistent cash accumulation highlights a potential vulnerability to short-term shocks in the aerospace and defense sector.
Quick answers to the most common questions about buying RAL stock.
As of 2025, Ralliant Corp. (RAL) had total assets of $3.82B including $976.1M in current assets.
Ralliant Corp. (RAL) carries total debt of $1.15B, offset by $318.8M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Ralliant Corp. (RAL) has total shareholders' equity (book value) of $1.63B ($14.41 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Ralliant Corp. (RAL) reported a current ratio of 0.84x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.