US Foods Holding Corp. (USFD) Balance Sheet

The balance sheet has expanded modestly, driven primarily by increases in PPE and retained earnings, while total debt has remained relatively flat. The D/E ratio has fluctuated between 0.98 and 1.33, with the latest reading at 1.22, suggesting that the company is not aggressively levering up. This stability, combined with consistent asset growth, implies a disciplined capital structure that supports ongoing operations without excessive risk.

Debt levels have remained in the $4.9B-$5.7B range over the past ten quarters, with a slight uptick in 2025Q4 to $5.7B before settling back to $5.2B. The D/E ratio, while not extreme, is higher than peers like Performance Food Group (1.79) but lower than Sysco (5.61), indicating a middle-ground leverage profile. Given the company's consistent operating cash flow, which has averaged over $350M per quarter, the current debt load appears serviceable, though investors should monitor any further increases that could strain coverage.

The asset base is dominated by goodwill, which has remained constant at $5.8B, suggesting no impairments have been taken, but also implying a significant portion of the balance sheet is tied to acquisition-related intangibles. PPE has increased steadily from $2.3B to $2.7B, reflecting ongoing investment in distribution infrastructure. The low capital intensity, with CapEx under 2% of revenue, suggests that the business relies more on intangible assets and working capital efficiency than on heavy fixed assets, which is typical for food distributors.

Equity has been relatively flat, fluctuating between $4.3B and $5.0B, despite strong retained earnings growth. This suggests that the company is returning significant capital to shareholders through buybacks, which have totaled over $2.3B in the last ten quarters, as per cash flow statements. The combination of rising retained earnings and stable equity implies that buybacks are absorbing a large portion of net income, which may limit equity growth but also signals confidence in the business. Investors should note that stock-based compensation, averaging around $50M per quarter, adds to dilution, partially offsetting the impact of buybacks.

The current ratio has declined from 1.31 to 1.14 over the past ten quarters, suggesting that current liabilities are growing faster than current assets. Cash balances have also fallen from $405M in 2024Q2 to $56M in 2026Q2, reflecting aggressive capital deployment. Despite this, the current ratio remains above 1.0, indicating that short-term obligations are still covered, but the margin of safety has narrowed. Given the company's strong operating cash flow, which has consistently exceeded net income, the liquidity position appears manageable, though a sudden downturn could strain it.