Teva Pharmaceutical Industries Limited (TEVA) Balance Sheet

Total debt has remained in a narrow $16.9B to $19.3B range across the ten quarters, while stockholders' equity rebounded from $5.4B to $8.0B. This suggests the deleveraging trend is real but still fragile, since a leverage ratio above 2.0 leaves limited room for earnings volatility. Investors should monitor whether equity growth continues, as the current improvement appears more accounting-driven than cash-driven.

Debt has stayed close to $17B since mid-2025, indicating that refinancing or repayment has not meaningfully reduced the principal burden. With Debt/Assets near 0.43 and total liabilities of $32.1B, the capital structure is dominated by creditor claims. Free cash flow has been volatile, so the durability of debt servicing warrants further investigation, particularly without disclosed repayment activity in the supplied cash flow data.

The asset mix points to an acquisition-built business rather than an asset-heavy manufacturer, with value concentrated in intangible and goodwill balances. Goodwill has drifted down from $16.5B to $15.7B, which may reflect amortization, impairment, or currency effects, though the data does not isolate the cause. The high goodwill share creates impairment exposure that could materially reduce book equity if future cash flows underperform.

A current ratio near or below 1.0 indicates a thin liquidity buffer, and cash of $4.1B provides only partial coverage of near-term liabilities. Cash has recovered from $1.7B in Q1 2025 to $4.1B, which improves the position but does not eliminate dependence on continuing operating cash generation. Liquidity appears adequate for routine operations on reported figures, though limited headroom remains against operating shocks.