Debt-to-Equity Ratio
Higher than 100% of Utilities sector peers
Updated 1734h ago
Sector Performance
100th percentileAES
7.01x
Sector Median
1.47x
Sector Avg
1.76x
Deep Analysis
A debt-to-equity ratio of 7.01x means the company uses $7.01 of debt for every $1 of shareholder equity — for a non-expert investor, this measures how much the company relies on borrowed money versus owner investment.
This ratio is far above the Utilities sector median of 1.47x, placing AES in the 100th percentile among sector peers, meaning it carries more debt relative to equity than every peer. The year-over-year change is not available, and the quarter-over-quarter change is also not available, so no trend can be assessed from the single data point. The combination of an extremely high debt-to-equity level with no trend information implies elevated financial risk, as the company is highly leveraged with no recent directional insight. This metric strongly supports the CAUTIOUS overall verdict, because such a high reliance on debt increases vulnerability to interest rate changes and economic downturns.
Frequently Asked Questions
What does the Debt-to-Equity Ratio tell investors about AES?
Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.
How is the Debt-to-Equity Ratio calculated?
Debt-to-Equity Ratio is calculated as: Total Debt / Shareholders' Equity.
How does AES's Debt-to-Equity Ratio compare to its sector?
AES's Debt-to-Equity Ratio of 7.01x compares to a Utilities sector median of 1.47x, placing it in the 100th percentile.
Who are AES's closest peers by Debt-to-Equity Ratio?
The closest Utilities peers by Debt-to-Equity Ratio include: AWK (1.42x), NEP (1.52x), PEG (1.40x), PNW (1.56x), PPL (1.35x).
The Formula
Total Debt / Shareholders' Equity
Why It Matters
Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.
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7.01x
Sector Median
1.47x
Sector Avg
1.76x
How AES's Debt-to-Equity Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.