Debt To Equity Ratio (Historical)

Returns historical debt-to-equity ratio for a company. This leverage ratio measures the proportion of debt financing relative to equity financing, indicating financial risk and capital structure. It is calculated as Total Debt divided by Shareholders' Equity.

Formula

Debt to Equity Ratio = Total Debt / Shareholders Equity

Supported Symbols

Type Format Example
US Stocks SYMBOL AAPL, MSFT
ETFs SYMBOL SPY, QQQ
International SYMBOL SHOP, TSM

Parameters

Parameter Description
Symbol Stock ticker symbol
Year Fiscal year (2020, 2021) or period code (lq, ly, lt)
Quarter Optional: 1, 2, 3, or 4 for quarterly data
TTM Optional: Set to "TTM" for trailing twelve months

Interpretation

Value Interpretation
< 0.5 Conservative, low leverage
0.5 - 1.0 Moderate leverage
1.0 - 2.0 Higher leverage, more risk
> 2.0 Highly leveraged

Notes

  • Lower ratios indicate less financial risk
  • Industry norms vary significantly (utilities typically higher)
  • Negative equity makes this ratio meaningless

Examples

=hf_Debt_to_Equity_Ratio("AAPL", 2023)
Apple D/E ratio
=hf_Debt_to_Equity_Ratio("MSFT", 2023, 2)
Microsoft Q2 2023
=hf_Debt_to_Equity_Ratio("GOOGL", "ly")
Alphabet last fiscal year
=hf_Debt_to_Equity_Ratio("T", 2023, , "TTM")
AT&T TTM
=hf_Debt_to_Equity_Ratio(A1, B1, C1)
Cell references

When to Use

  • Analyzing financial leverage trends
  • Credit risk assessment
  • Comparing capital structures
  • Evaluating financial stability
  • Investment screening by leverage

When NOT to Use

Scenario Use Instead
Need current D/E ratio Debt_to_Equity()
Need total debt hf_Total_Debt()
Need shareholders equity hf_Shareholders_Equity()
Need interest coverage hf_Interest_Coverage()

Common Issues & FAQ

Q: Why is Apple's D/E ratio high for a tech company? A: Apple has taken on significant debt for share buybacks and dividends, even though it has large cash reserves.

Q: What's a good D/E ratio? A: It depends on the industry. Capital-intensive industries (utilities, telecoms) typically have higher ratios. Tech companies often have lower ratios.

Q: Why am I getting "NA" or unusual values? A: This may occur if shareholders' equity is negative or near zero, making the ratio meaningless or undefined.

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