AFRM Debt-to-Equity Ratio Analysis

Affirm’s current Debt-to-Equity ratio of 2.36x means that for every dollar of shareholder equity, the company carries $2.36 in debt — a measure of financial leverage that shows how aggressively the firm uses borrowed money.

This is far above the Technology sector median of 0.29x, placing Affirm in the 97th percentile among its peers, indicating much higher debt usage than the vast majority of comparable companies. The trend data is not available: both the year-over-year and quarter-over-quarter changes are listed as N/A, and the only historical value provided is the current 2.36x, so no directional trend can be assessed. The combination of a very high debt load with no trend information means investors face elevated financial risk from leverage, but without a trend, it is impossible to tell whether the company is increasing or reducing that risk. This metric contradicts the overall NEUTRAL verdict because the extreme debt level, relative to the sector, suggests a higher-risk profile that would typically warrant a cautious or bearish stance.

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