The balance sheet shows low reported leverage — $14.8 million total debt, a 0.12 debt-to-equity ratio and a 10.71 current ratio — yet cash has declined from $54.9 million to $24.5 million and retained earnings carry a $115.9 million deficit, suggesting the equity base depends on continued capital raising rather than operating self-funding.
Shoulder Innovations, Inc. (SI) balance sheet — 3-year assets, liabilities & shareholders' equity history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 |
|---|
| Total Current Assets | 131.08M | 157.16M | 35.13M | 47.85M |
| Cash & Short-Term Investments | 92.33M | 124.31M | 15.04M | 32.81M |
| Cash Only | 36.42M | 26.87M | 6.12M | 6.24M |
| Short-Term Investments | 55.92M | 97.43M | 8.92M | 26.58M |
| Accounts Receivable | 9.29M | 8.27M | 5.12M | 4.69M |
| Days Sales Outstanding | 55.14 | 63.78 | 59.12 | 88.87 |
| Inventory | 24.38M | 21.59M | 13.96M | 9.92M |
| Days Inventory Outstanding | 578.85 | 709.02 | 699.47 | 904.57 |
| Other Current Assets | 5.08M | 1.48M | 573K | 0 |
| Total Non-Current Assets | 14.49M | 12.74M | 7.96M | 6.45M |
| Property, Plant & Equipment | 13.83M | 12.64M | 7.55M | 5.75M |
| Fixed Asset Turnover | 4.64x | 3.74x | 4.19x | 3.35x |
| Goodwill | 0 | 0 | 0 | 0 |
| Intangible Assets | 14K | 100K | 400K | 700K |
| Long-Term Investments | 0 | 0 | 0 | 0 |
| Other Non-Current Assets | 648K | 0 | 0 | 0 |
| Total Assets | 145.57M | 169.91M | 43.08M | 54.29M |
| Asset Turnover | 0.41x | 0.28x | 0.73x | 0.35x |
| Asset Growth % | 550.37% | 294.4% | -20.65% | - |
| Total Current Liabilities | 12.28M | 14.2M | 7.65M | 4.28M |
| Accounts Payable | 4.56M | 8.87M | 4.86M | 1.96M |
| Days Payables Outstanding | 161.36 | 291.41 | 243.6 | 178.58 |
| Short-Term Debt | 37K | 0 | 0 | 0 |
| Deferred Revenue (Current) | 0 | 0 | 0 | 0 |
| Other Current Liabilities | 12.24M | 772K | 307K | 228K |
| Current Ratio | 10.68x | 11.07x | 4.59x | 11.17x |
| Quick Ratio | 8.69x | 9.55x | 2.77x | 8.85x |
| Cash Conversion Cycle | 472.64 | 481.39 | 514.99 | 814.86 |
| Total Non-Current Liabilities | 14.85M | 14.96M | 90.13M | 89.75M |
| Long-Term Debt | 14.85M | 14.91M | 14.66M | 14.35M |
| Capital Lease Obligations | 51K | 51K | 25K | 71K |
| Deferred Tax Liabilities | 0 | 0 | 0 | 0 |
| Other Non-Current Liabilities | 0 | 0 | 75.44M | 75.33M |
| Total Liabilities | 14.87M | 29.16M | 97.78M | 94.03M |
| Total Debt | 14.88M | 15.02M | 14.73M | 14.46M |
| Net Debt | -21.53M | -11.85M | 8.61M | 8.23M |
| Debt / Equity | 0.13x | 0.11x | - | - |
| Debt / EBITDA | -0.47x | - | - | - |
| Net Debt / EBITDA | 0.68x | - | - | - |
| Interest Coverage | 17.07x | -575.56x | -10.87x | -15.63x |
| Total Equity | 118.43M | 140.75M | -54.7M | -39.74M |
| Equity Growth % | 1029.9% | 357.34% | -37.64% | - |
| Book Value per Share | 5.68 | 6.82 | -2.75 | -1.99 |
| Total Shareholders' Equity | 118.43M | 140.75M | -54.7M | -39.74M |
| Common Stock | 21K | 21K | 1K | 1K |
| Retained Earnings | -122.98M | -97.4M | -57.04M | -41.42M |
| Treasury Stock | 0 | 0 | 0 | 0 |
| Accumulated OCI | -121K | 117K | 197K | 356K |
| Minority Interest | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying SI stock.
As of 2025, Shoulder Innovations, Inc. (SI) had total assets of $169.9M including $157.2M in current assets.
Shoulder Innovations, Inc. (SI) carries total debt of $15.0M, offset by $124.3M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Shoulder Innovations, Inc. (SI) has total shareholders' equity (book value) of $140.8M ($6.82 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Shoulder Innovations, Inc. (SI) reported a current ratio of 11.07x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.
Key Metrics
Top Statement Risk
Cash burn erodes funding buffer
Metrics are mathematically derived from official filings.
Funding Gap Erodes Cash Reserves
Cash has fallen from $54.9 million in 2025Q3 to $24.5 million in 2026Q2 even as total assets declined from $177.8 million to $152.0 million, based on Shoulder Innovations' reported quarterly balance sheets, signalling that operating burn, not asset deterioration, is driving the contraction.
The equity base compressed from $162.9 million to $124.3 million over three quarters with no debt paydown beyond a $200K decline, which appears consistent with accumulated operating losses rather than liabilities extinguished. Given the prior cash flow work showing cumulative six-quarter free cash burn of $60.7 million, the balance sheet trajectory suggests the company is funding scale-up by drawing down its capital stack rather than by generating cash from operations.
Thin Debt Load Masks Burn Dependence
Total debt has been essentially static at roughly $15 million across all six reported quarters while D/E fell from 0.42 to 0.12 as equity inflated, per Shoulder Innovations' balance sheet data, indicating leverage optics improved purely through capital raising rather than repayment.
A debt-to-assets ratio near 10% and current ratio of 10.71 imply that near-term refinancing pressure appears minimal; the modest debt may serve strategic instrument financing rather than survival purposes. However, static debt alongside shrinking cash suggests the balance sheet's cushion is a function of past equity issuance, and investors should monitor whether the debt needs refinancing before operating performance turns cash generative.
Generous Current Ratio Confronts Burn Rate
The current ratio of 10.71 and $24.5 million cash balance in 2026Q2 appear substantial in isolation, but with quarterly operating outflows running near $7 million according to reported cash flow statements, the implied runway may be closer to eight quarters before external funding becomes necessary again.
Liquidity metrics reflect a pre-commercialization medical device capital structure: cash and working capital are large relative to a $17.2 million quarterly revenue base, which can look misleadingly strong next to Globus Medical's 4.26 current ratio on a $2.9 billion revenue scale. The key judgment is that buffer adequacy depends on the burn trajectory; the 2025Q3 peak of $54.9 million cash has already been cut by more than half in three quarters.
PPE Buildout Runs Ahead of Intangibles
Net property, plant and equipment grew from $7.6 million to $14.6 million over six quarters, an increase of roughly 92% versus a revenue gain of about 70%, while goodwill was written down from $325K to zero, based on Shoulder Innovations' reported asset schedules.
The PPE trajectory is consistent with a device manufacturer scaling manufacturing and supply chain capacity ahead of commercial demand, which explains the cumulative $12.4 million capex program flagged in the cash flow work. The orderly goodwill reduction to nil suggests the company has purged acquisition-related intangibles, leaving an asset base that is tangible but currently underutilized relative to depreciation and fixed costs; capacity utilization versus depreciation is a metric worth watching for margin durability.
Deficit Equity Overstates Owner Value
Retained earnings swung from a reported zero balance in 2025Q4 to a $115.9 million deficit in 2026Q2, yet equity was presented at $124.3 million in the same quarter, implying the equity base rests on paid-in capital that has not been offset by operating losses.
The apparent equity cushion may therefore reflect an accounting presentation reset rather than accumulated wealth; had prior-period losses flowed continuously through retained earnings, the negative figure would likely be far larger, which the reported numbers make hard to verify directly. Investors should be cautious treating headline equity as a solvency buffer, since the operating deficit widened to $10.0 million in 2026Q2 with cumulative net losses of $59.0 million over six quarters, and each new reporting period appears to add to the equity erosion that will ultimately have to be funded.