The company maintains a strategically elevated leverage profile with a debt-to-equity ratio of 2.16 as of 2026Q1, supported by a current ratio of 1.51 that provides a necessary liquidity buffer.
| Total Current Assets | 2.18B | 2.01B | 2.2B | 2.61B |
| Cash & Short-Term Investments | 600.97M | 573.95M | 397M | 262M |
| Cash Only | 600.97M | 573.95M | 397M | 262M |
| Short-Term Investments | 0 | 0 | 0 | 0 |
| Accounts Receivable | 980.21M | 1.18B | 1.25B | 1.4B |
| Days Sales Outstanding | 229.46 | 266.91 | 215.73 | 255.59 |
| Inventory | 192.63M | 99.82M | 207M | 160M |
| Days Inventory Outstanding | 48.39 | 28 | 121.47 | 166.38 |
| Other Current Assets | 410.35M | 132.76M | 313M | 788M |
| Total Non-Current Assets | 9.09B | 9.16B | 9.13B | 9.42B |
| Property, Plant & Equipment | 8.15B | 8.23B | 8.21B | 8.43B |
| Fixed Asset Turnover | 0.21x | 0.20x | 0.26x | 0.24x |
| Goodwill | 0 | 0 | 0 | 0 |
| Intangible Assets | 0 | 0 | 0 | 0 |
| Long-Term Investments | 2.96B | 830.49M | 732M | 813M |
| Other Non-Current Assets | 103.34M | 73.87M | 177M | 177M |
| Total Assets | 11.28B | 11.17B | 11.33B | 12.03B |
| Asset Turnover | 0.15x | 0.14x | 0.19x | 0.17x |
| Asset Growth % | -55.39% | -1.38% | -5.84% | - |
| Total Current Liabilities | 1.45B | 1.34B | 1.76B | 2.08B |
| Accounts Payable | 1.03B | 752.63M | 1.54B | 1.23B |
| Days Payables Outstanding | 382.21 | 211.09 | 906.04 | 1.28K |
| Short-Term Debt | 0 | 0 | 0 | 0 |
| Deferred Revenue (Current) | 44.95M | 15.97M | 0 | 0 |
| Other Current Liabilities | 405.33M | 409.25M | 0 | 753M |
| Current Ratio | 1.51x | 1.50x | 1.25x | 1.26x |
| Quick Ratio | 1.37x | 1.43x | 1.13x | 1.18x |
| Cash Conversion Cycle | -104.37 | 83.82 | -568.85 | -856.05 |
| Total Non-Current Liabilities | 7.16B | 7.13B | 6.96B | 7.12B |
| Long-Term Debt | 5.77B | 5.76B | 5.72B | 5.97B |
| Capital Lease Obligations | 22.96M | 22.96M | 0 | 6M |
| Deferred Tax Liabilities | 4.41B | 1.19B | 1.1B | 0 |
| Other Non-Current Liabilities | 156.51M | 131.76M | 140M | 1.14B |
| Total Liabilities | 8.61B | 8.47B | 8.72B | 9.19B |
| Total Debt | 5.77B | 5.78B | 5.72B | 5.97B |
| Net Debt | 5.17B | 5.21B | 5.32B | 5.71B |
| Debt / Equity | 2.16x | 2.14x | 2.19x | 2.10x |
| Debt / EBITDA | 8.71x | 10.16x | 5.77x | 6.33x |
| Net Debt / EBITDA | 7.80x | 9.15x | 5.37x | 6.05x |
| Interest Coverage | 1.78x | 0.94x | 2.08x | 3.55x |
| Total Equity | 2.67B | 2.7B | 2.61B | 2.84B |
| Equity Growth % | -36.73% | 3.6% | -8.1% | - |
| Book Value per Share | 12.80 | 12.95 | 12.54 | 13.68 |
| Total Shareholders' Equity | 2.67B | 2.7B | 2.61B | 2.84B |
| Common Stock | 2.22B | 2.2B | 2.2B | 2.97B |
| Retained Earnings | -59.19M | -31.94M | -49M | 0 |
| Treasury Stock | 0 | 0 | 0 | 0 |
| Accumulated OCI | -149.49M | -120.78M | -198M | -128M |
| Minority Interest | 0 | 0 | 0 | 0 |
Post-Spin Leverage and Liquidity
As reported in recent financial statements, South Bow's total assets have stabilized near $11.3 billion following the significant volatility observed in 2024Q3, suggesting that the company is successfully transitioning toward a more predictable, standalone capital structure after its separation from the former parent entity.
The stabilization of total assets at $11.3 billion in 2026Q1, compared to the $16.8 billion peak in 2024Q3, indicates a deliberate effort to right-size the balance sheet for its independent operational mandate. Investors should monitor whether this plateau represents a permanent floor or if further asset rationalization is required to align with long-term throughput expectations.
Based on the company's reported figures, the debt-to-equity ratio has remained consistently above 2.0, reaching 2.16 in 2026Q1, which reflects a capital structure heavily reliant on debt to support the infrastructure-intensive nature of the Keystone pipeline system's ongoing operations and maintenance requirements.
A debt-to-equity ratio of 2.16 suggests that management is utilizing significant financial leverage to maintain its asset base, which may limit flexibility during periods of sector-wide volatility. While this leverage appears strategic for a midstream operator, the lack of significant deleveraging since the spin-off warrants further investigation into the company's long-term debt service capacity.
According to recent SEC filings, South Bow maintains a current ratio of 1.51 as of 2026Q1, providing a sufficient liquidity buffer that appears to adequately cover short-term obligations despite the inherent working capital volatility associated with the company's large-scale energy transport operations.
The improvement in the current ratio from 1.25 in 2024Q4 to 1.51 in 2026Q1 suggests a strengthening of the company's immediate liquidity position. This trend may indicate better management of current assets and liabilities, though investors should remain cautious given the historical swings in working capital observed in previous quarters.
As indicated by the balance sheet data, South Bow's asset composition is almost entirely dominated by $8.1 billion in net property, plant, and equipment, confirming the company's status as an asset-heavy midstream operator with minimal reliance on goodwill or intangible assets.
The absence of goodwill on the balance sheet is a positive indicator of asset quality, suggesting that the company's valuation is backed by tangible, revenue-generating infrastructure rather than accounting premiums. However, the heavy concentration in PPE implies that future earnings growth is tethered to the physical capacity and maintenance of the existing pipeline network.
Quick answers to the most common questions about buying SOBO stock.
As of 2025, South Bow Corporation (SOBO) had total assets of $11.17B including $2.01B in current assets.
South Bow Corporation (SOBO) carries total debt of $5.78B, offset by $574.0M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
South Bow Corporation (SOBO) has total shareholders' equity (book value) of $2.70B ($12.95 book value per share). Book value represents the net worth of the company belonging to common stock holders.
South Bow Corporation (SOBO) reported a current ratio of 1.50x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.