The company's financial position appears increasingly precarious, with shareholders' equity deteriorating to a negative $1.2 billion and a current ratio that has declined to 0.68 as of 2026Q1.
| Total Current Assets | 535.1M | 517.8M | 618.8M | 738.1M | 1.07B | 989.5M | 758.5M | 543.7M | 614.3M |
| Cash & Short-Term Investments | 93.6M | 105.8M | 144M | 196.8M | 228.4M | 272.8M | 104.7M | 83.8M | 254.3M |
| Cash Only | 93.6M | 105.8M | 144M | 196.8M | 228.4M | 272.8M | 104.7M | 83.8M | 254.3M |
| Short-Term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Accounts Receivable | 271.1M | 266.5M | 298.8M | 339.7M | 622.2M | 554.3M | 483M | 350.3M | 260.5M |
| Days Sales Outstanding | 36.03 | 36.22 | 39.85 | 41.93 | 72.74 | 67.23 | 65.12 | 52.44 | 38.76 |
| Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 55M |
| Days Inventory Outstanding | - | - | - | - | - | - | - | - | 13.89 |
| Other Current Assets | 41.1M | 145.5M | 91.1M | 114.2M | 125.3M | 52.4M | 47M | 33.4M | 44.5M |
| Total Non-Current Assets | 2.23B | 2.28B | 2.44B | 3.36B | 4.38B | 5.34B | 5.62B | 5.73B | 5.5B |
| Property, Plant & Equipment | 720.1M | 740.9M | 735.6M | 735.1M | 766.3M | 988.5M | 1.06B | 1.04B | 927M |
| Fixed Asset Turnover | 3.72x | 3.62x | 3.72x | 4.02x | 4.07x | 3.04x | 2.56x | 2.35x | 2.65x |
| Goodwill | 738.8M | 740.1M | 735.7M | 1.45B | 2.16B | 2.71B | 2.76B | 2.75B | 2.47B |
| Intangible Assets | 667.1M | 698.3M | 844.7M | 1.02B | 1.24B | 1.47B | 1.65B | 1.82B | 1.93B |
| Long-Term Investments | 6.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 22.6M |
| Other Non-Current Assets | 98.1M | 102.7M | 119.3M | 151.6M | 226.1M | 177.4M | 156.2M | 129.4M | 164.5M |
| Total Assets | 2.77B | 2.8B | 3.05B | 4.1B | 5.46B | 6.33B | 6.38B | 6.27B | 6.11B |
| Asset Turnover | 0.95x | 0.96x | 0.90x | 0.72x | 0.57x | 0.48x | 0.42x | 0.39x | 0.40x |
| Asset Growth % | -39.35% | -8.33% | -25.44% | -24.93% | -13.78% | -0.77% | 1.68% | 2.63% | - |
| Total Current Liabilities | 785.6M | 766.7M | 766.6M | 799.5M | 856.5M | 837.4M | 742.2M | 671.9M | 565.5M |
| Accounts Payable | 413.6M | 413.9M | 389.6M | 432.7M | 447.3M | 369.5M | 285.4M | 260.4M | 233.5M |
| Days Payables Outstanding | 63.07 | 64.94 | 64.53 | 68.41 | 72.07 | 65.07 | 60.47 | 66.61 | 58.95 |
| Short-Term Debt | 143.2M | 144M | 29.2M | 23M | 23M | 23M | 43.4M | 29M | 34M |
| Deferred Revenue (Current) | 366.5M | 94.6M | 84.2M | 78.8M | 80.9M | 98.6M | 76.7M | 66.6M | 57.4M |
| Other Current Liabilities | 28.3M | 114.2M | 130.8M | 108.7M | 130.6M | 145.7M | 158.5M | 178.7M | 68.3M |
| Current Ratio | 0.68x | 0.68x | 0.81x | 0.92x | 1.25x | 1.18x | 1.02x | 0.81x | 1.09x |
| Quick Ratio | 0.68x | 0.68x | 0.81x | 0.92x | 1.25x | 1.18x | 1.02x | 0.81x | 0.99x |
| Cash Conversion Cycle | -27.04 | - | - | - | - | - | - | - | -6.3 |
| Total Non-Current Liabilities | 3.2B | 3.25B | 3.29B | 3.45B | 3.97B | 4.16B | 4.25B | 4.7B | 4.64B |
| Long-Term Debt | 2.68B | 2.72B | 2.76B | 2.84B | 3.3B | 3.31B | 3.32B | 3.84B | 3.93B |
| Capital Lease Obligations | 1.6B | 421.2M | 370.9M | 382.6M | 395.3M | 459.9M | 476.3M | 344.9M | 294.3M |
| Deferred Tax Liabilities | 118.9M | 34.7M | 30.2M | 79.2M | 126.7M | 205.8M | 236.7M | 326.9M | 362.4M |
| Other Non-Current Liabilities | 75M | 78M | 134.2M | 149.8M | 153.3M | 187.3M | 219.6M | 185.6M | 50.8M |
| Total Liabilities | 3.98B | 4.02B | 4.06B | 4.25B | 4.83B | 5B | 4.99B | 5.37B | 5.2B |
| Total Debt | 3.23B | 3.28B | 3.28B | 3.38B | 3.85B | 3.97B | 3.99B | 4.32B | 4.3B |
| Net Debt | 3.13B | 3.18B | 3.14B | 3.18B | 3.62B | 3.69B | 3.89B | 4.24B | 4.04B |
| Debt / Equity | -2.65x | - | - | - | 6.12x | 2.99x | 2.88x | 4.81x | 4.74x |
| Debt / EBITDA | 10.46x | 11.16x | - | - | - | 8.13x | 7.11x | 6.47x | 6.31x |
| Net Debt / EBITDA | 10.16x | 10.80x | - | - | - | 7.57x | 6.92x | 6.34x | 5.93x |
| Interest Coverage | -0.41x | -0.54x | -7.99x | -2.68x | -3.31x | -0.21x | -0.22x | 0.63x | -0.78x |
| Total Equity | -1.22B | -1.22B | -1B | -154.5M | 629.5M | 1.33B | 1.38B | 898.8M | 907.8M |
| Equity Growth % | -107.81% | -21.44% | -549.97% | -124.54% | -52.58% | -4.07% | 53.95% | -0.99% | - |
| Book Value per Share | -4.87 | -5.11 | -4.47 | -0.72 | 2.98 | 6.38 | 7.70 | 54.81 | 55.35 |
| Total Shareholders' Equity | -1.22B | -1.22B | -1B | -154.5M | 629.5M | 1.33B | 1.38B | 898.8M | 907.8M |
| Common Stock | 2.5M | 2.5M | 2.3M | 2.2M | 2.2M | 2.1M | 2M | 1.6M | 1.6M |
| Retained Earnings | -3.9B | -3.91B | -3.68B | -2.82B | -1.99B | -1.18B | -963.3M | -717.5M | -671.1M |
| Treasury Stock | -31M | -31M | -31M | -31M | -31M | 0 | 0 | 0 | 0 |
| Accumulated OCI | -1.8M | 7.5M | 24.1M | 60.3M | 71.4M | 6.9M | -18.6M | 12M | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Insolvency and liquidity constraints
According to recent financial statements, Rackspace Technology's balance sheet has deteriorated significantly, with shareholders' equity plummeting from a negative $154.5 million in 2023Q4 to a negative $1.2 billion by 2026Q1, signaling a persistent erosion of the company's net asset base over the observed period.
The consistent decline in equity suggests that ongoing operational losses are rapidly consuming the company's book value. Investors should monitor whether this trajectory indicates a structural inability to generate sufficient returns to cover the capital base, potentially necessitating future dilutive equity raises or restructuring.
Based on reported figures, Rackspace Technology maintains a substantial debt load of $3.2 billion as of 2026Q1, which remains largely unchanged from the $3.4 billion reported in 2023Q4, highlighting a lack of meaningful deleveraging despite the company's ongoing strategic pivot toward an asset-light model.
The high debt-to-asset ratio, coupled with negative equity, suggests that the company is effectively operating under a state of technical insolvency. This leverage profile limits management's ability to invest in growth initiatives and leaves the firm highly sensitive to interest rate fluctuations and refinancing risks.
As reported in recent SEC filings, the company's liquidity position has tightened considerably, with cash reserves falling from $282.6 million in 2024Q1 to just $93.6 million in 2026Q1, while the current ratio has simultaneously declined from 1.05 to 0.68 over the same timeframe.
A current ratio below 1.0 indicates that current liabilities exceed current assets, suggesting a potential mismatch between short-term obligations and available liquid resources. This trend warrants close monitoring, as it may limit the company's ability to navigate unexpected operational shocks or fund necessary working capital requirements.
Data from quarterly filings reveals that goodwill remains a significant component of total assets at $738.8 million, which, when compared to the company's negative equity position, suggests that the balance sheet may be highly sensitive to future impairment charges if business performance continues to underperform.
The presence of substantial intangible assets on a balance sheet with negative equity raises concerns regarding the quality of the asset base. Investors should consider the risk that these assets may require write-downs, which would further exacerbate the already precarious equity position and potentially trigger debt covenant violations.
Quick answers to the most common questions about buying RXT stock.
As of 2025, Rackspace Technology, Inc. (RXT) had total assets of $2.80B including $517.8M in current assets.
Rackspace Technology, Inc. (RXT) carries total debt of $3.28B, offset by $105.8M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Rackspace Technology, Inc. (RXT) has total shareholders' equity (book value) of $-1219.5M ($-5.11 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Rackspace Technology, Inc. (RXT) reported a current ratio of 0.68x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.