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Debt-to-equity rose to 1.09 in Q2 2026 with total debt of $3.4B, while cash more than doubled to $2.1B, indicating manageable leverage but increased financial risk.
| Total Current Assets | 3.65B | 3.43B | 2.39B | 2.07B | 1.28B | 1.21B |
| Cash & Short-Term Investments | 2.12B | 2.03B | 1.1B | 762M | 0 | 0 |
| Cash Only | 2.12B | 2.03B | 1.1B | 762M | 0 | 0 |
| Short-Term Investments | 0 | 0 | 0 | 0 | 0 | 0 |
| Accounts Receivable | 921M | 897M | 812M | 826M | 816M | 757M |
| Days Sales Outstanding | 57.91 | 59.5 | 57.07 | 60.05 | 61.16 | 58.79 |
| Inventory | 336M | 307M | 288M | 297M | 345M | 322M |
| Days Inventory Outstanding | 52.91 | 50.84 | 50.34 | 51.13 | 59.68 | 59.15 |
| Other Current Assets | 276M | 56M | 186M | 188M | 119M | 126M |
| Total Non-Current Assets | 4.91B | 4.26B | 4.02B | 3.62B | 3.54B | 3.63B |
| Property, Plant & Equipment | 298M | 294M | 268M | 262M | 247M | 260M |
| Fixed Asset Turnover | 19.41x | 18.72x | 19.38x | 19.16x | 19.72x | 18.08x |
| Goodwill | 3.17B | 2.84B | 2.69B | 2.53B | 2.48B | 2.5B |
| Intangible Assets | 828M | 524M | 535M | 427M | 479M | 533M |
| Long-Term Investments | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Current Assets | 613M | 605M | 523M | 398M | 343M | 340M |
| Total Assets | 8.56B | 7.69B | 6.41B | 5.69B | 4.83B | 4.84B |
| Asset Turnover | 0.73x | 0.72x | 0.81x | 0.88x | 1.01x | 0.97x |
| Asset Growth % | 73.22% | 20.09% | 12.52% | 17.99% | -0.31% | - |
| Total Current Liabilities | 2.06B | 2.06B | 1.25B | 1.26B | 1.12B | 1.12B |
| Accounts Payable | 425M | 416M | 395M | 431M | 440M | 464M |
| Days Payables Outstanding | 67.07 | 68.89 | 69.05 | 74.21 | 76.11 | 85.23 |
| Short-Term Debt | 700M | 700M | 39M | 33M | 32M | 34M |
| Deferred Revenue (Current) | 0 | 0 | 237M | 208M | 192M | 175M |
| Other Current Liabilities | 932M | 0 | 330M | 403M | 243M | 216M |
| Current Ratio | 1.78x | 1.67x | 1.92x | 1.64x | 1.14x | 1.07x |
| Quick Ratio | 1.61x | 1.52x | 1.69x | 1.40x | 0.83x | 0.79x |
| Cash Conversion Cycle | 43.75 | 41.44 | 38.37 | 36.98 | 44.72 | 32.7 |
| Total Non-Current Liabilities | 3.4B | 2.53B | 3.12B | 3.04B | 462M | 518M |
| Long-Term Debt | 2.68B | 1.97B | 2.6B | 2.63B | 0 | 0 |
| Capital Lease Obligations | 0 | 0 | 129M | 115M | 91M | 101M |
| Deferred Tax Liabilities | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Current Liabilities | 725M | 558M | 371M | 280M | 357M | 404M |
| Total Liabilities | 5.46B | 4.59B | 4.36B | 4.3B | 1.58B | 1.64B |
| Total Debt | 3.38B | 2.67B | 2.77B | 2.78B | 123M | 135M |
| Net Debt | 1.26B | 642M | 1.67B | 2.02B | 123M | 135M |
| Debt / Equity | 1.09x | 0.86x | 1.35x | 2.00x | 0.04x | 0.04x |
| Debt / EBITDA | 2.51x | 1.97x | 2.15x | 2.26x | 0.10x | 0.12x |
| Net Debt / EBITDA | 0.94x | 0.47x | 1.30x | 1.64x | 0.10x | 0.12x |
| Interest Coverage | 14.13x | 13.22x | 10.61x | 37.53x | - | - |
| Total Equity | 3.1B | 3.11B | 2.04B | 1.39B | 3.24B | 3.2B |
| Equity Growth % | 143.8% | 51.88% | 47.23% | -57.13% | 1.22% | - |
| Book Value per Share | 12.60 | 12.41 | 8.19 | 5.64 | 13.17 | 13.01 |
| Total Shareholders' Equity | 3.1B | 3.1B | 2.04B | 1.38B | 3.23B | 3.2B |
| Common Stock | 2M | 2M | 2M | 2M | 4.19B | 4.08B |
| Retained Earnings | 2.17B | 1.74B | 917M | 178M | 0 | 0 |
| Treasury Stock | 0 | 0 | 0 | 0 | 0 | 0 |
| Accumulated OCI | -960M | -913M | -1.07B | -954M | -954M | -887M |
| Minority Interest | 1M | 1M | 7M | 6M | 5M | 4M |
Debt and integration risks
Total assets grew 51% from $5.7B to $8.6B since Q1 2024, while equity expanded from $1.5B to $3.1B, per SEC filings, indicating a rapidly strengthening balance sheet.
The asset growth is driven by a $700M increase in goodwill and a $1.3B rise in cash, reflecting both acquisition activity and strong cash generation. Equity expansion outpaced asset growth, suggesting improving financial flexibility. This trajectory supports the company's capacity for future investments and debt reduction.
Debt-to-equity rose to 1.09 in Q2 2026 from 0.86 in Q4 2025, with total debt at $3.4B, as reported in financial statements, indicating increased leverage but still within manageable levels.
The increase in debt coincides with a $700M rise in cash, suggesting the company may be building a war chest for M&A. Despite the higher leverage, interest coverage appears adequate given strong operating income, and the debt is likely strategic rather than necessity-driven. Investors should monitor deleveraging progress, but the current level does not appear to threaten cash flow durability.
Goodwill and intangibles dominate the asset base at $3.2B, while net PPE is only $298M, per recent 10-Q filings, underscoring an asset-light model with significant acquisition-driven intangibles.
The minimal PPE relative to total assets confirms a high-margin, consumable-heavy business with low capital intensity. However, the growing goodwill balance (up $700M over the period) raises impairment risk if acquired businesses underperform. The asset mix suggests the company's value lies in brands and technology, not physical assets, which supports high returns but warrants monitoring of acquisition integration.
Retained earnings surged from $340M in Q1 2024 to $2.2B in Q2 2026, per company filings, reflecting strong profit retention and a 106% increase in total equity.
The rapid accumulation of retained earnings indicates robust profitability and a conservative dividend policy, allowing the company to self-fund growth. While share repurchases have begun, the equity base is primarily built on organic earnings, suggesting high-quality equity growth. This provides a solid cushion for future debt or investment needs.
Current ratio improved to 1.78 in Q2 2026 from 1.83 in Q1 2024, while cash more than doubled to $2.1B, as per financial statements, indicating a robust liquidity position.
The cash balance provides ample runway for operations and strategic initiatives, with a current ratio above 1.5 indicating strong short-term solvency. The increase in cash, despite higher debt, suggests the company is accumulating dry powder for acquisitions. This liquidity buffer appears sufficient to weather economic shocks and supports the company's investment-grade profile.
Goodwill stands at $3.2B, representing 37% of total assets, as reported in SEC filings, making it the largest single asset and a potential source of future write-downs.
The substantial goodwill balance, largely from acquisitions, exposes the balance sheet to impairment risk if growth expectations are not met. While current performance is strong, any deterioration in the Water Quality or Product Quality segments could trigger a non-cash charge, impacting equity. Investors should monitor acquisition integration and segment performance closely, as this is the most non-obvious distortion in the headline numbers.
Quick answers to the most common questions about buying VLTO stock.
As of 2025, Veralto Corporation (VLTO) had total assets of $7.69B including $3.43B in current assets.
Veralto Corporation (VLTO) carries total debt of $2.67B, offset by $2.03B in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Veralto Corporation (VLTO) has total shareholders' equity (book value) of $3.10B ($12.41 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Veralto Corporation (VLTO) reported a current ratio of 1.67x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.