AES Debt-to-Equity Ratio Analysis
Higher than 100% of Utilities sector peers
Updated 2841h ago·SEC filings & market data
Key Takeaway
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.
Sector Performance
100th percentileAES
7.01x
Sector Median
1.52x
Sector Avg
1.87x
Prior Period
4.40x(Apr 2026)
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 1.52x, 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: NEP (1.52x), PNW (1.56x), LNT (1.60x), PEG (1.42x), AEP (1.63x).
Learn More About Debt-to-Equity Ratio
How to Spot a Debt Problem Before It Hits the Stock Price
Learn how to spot a debt problem in stocks using D/E, interest coverage, and net debt/EBITDA ratios. Real examples from META and MSFT, plus danger thresholds you need to know.
Debt/Equity Ratio: How Much Debt Is Too Much?
The debt to equity ratio explained: why context, interest coverage, and sector norms matter far more than the raw number when assessing debt risk.
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.
Master AES's Valuation
Get the complete institutional research report covering all fundamental and technical metrics.
View full AES research report →AES
7.01x
Sector Median
1.52x
Sector Avg
1.87x
How AES's Debt-to-Equity Ratio compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.