Debt-to-equity: what it is and how to read it
It compares the company's financial debt with its equity (what belongs to shareholders). It shows how much the company relies on borrowed money versus its own.
How it is calculated
Debt-to-equity = total financial debt / shareholders' equity, in %.
How to read it
50% means that for every 100 of equity there are 50 of debt. Above 100%, the company owes more than its shareholders own; normal in some sectors and worrying in others.
Debt-to-equity in the MeridIAn ranking
Among the 1,889 companies in the ranking with data, the median Debt-to-equity is 65.9%: half are below and half above. The lowest 25% are below 29.8% and the highest 25% above 124.4%.
For example: NVIDIA, 17.0%; Apple, 78.4%; Alphabet, 18.9%; Inditex, 34.7%.
By sector
| Sector | Median | Companies with data |
|---|---|---|
| Basic Materials | 44.8% | 139 |
| Communication Services | 91.3% | 93 |
| Consumer Cyclical | 95.9% | 210 |
| Consumer Defensive | 82.9% | 119 |
| Energy | 65.0% | 101 |
| Financial Services | 47.7% | 206 |
| Healthcare | 56.6% | 197 |
| Industrials | 67.7% | 376 |
| Real Estate | 85.1% | 96 |
| Technology | 36.2% | 261 |
| Utilities | 146.6% | 91 |
Lowest Debt-to-equity
What to watch out for
If equity is very small or negative (because of buybacks or accumulated losses), the figure explodes and stops being useful: look at net debt / EBITDA instead.
Related metrics
All metrics in the glossary → · Stocks by sector and country → · Ready-made screeners →
General information for educational purposes, not investment advice. Figures from the latest weekly analysis (Oct 8, 2026) with the latest available price.