Debt-to-Equity Ratio
Higher than 30% of Industrials sector peers
Updated 1856h ago
Sector Performance
30th percentileAOS
0.35x
Sector Median
0.72x
Sector Avg
0.79x
Deep Analysis
A.
O. Smith’s debt-to-equity ratio of 0.35x means the company uses $0.35 of debt for every $1 of shareholders’ equity — a low level of financial leverage that signals conservative borrowing. This ratio sits well below the Industrials sector median of 0.78x, placing AOS in the 24th percentile among its peers, meaning only 24% of sector companies carry less debt relative to equity. The metric has been perfectly stable over the past eight quarters, with no change year-over-year (+0.0%) or quarter-over-quarter (+0.0%). The combination of a low, stable debt level implies minimal financial risk from leverage but also no recent strategic shift toward borrowing for growth, which typically limits upside catalysts. This conservative profile supports the overall NEUTRAL verdict by confirming AOS is not overleveraged, yet lacks the debt-driven expansion that could tilt the view bullish.
Frequently Asked Questions
What does the Debt-to-Equity Ratio tell investors about AOS?
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 AOS's Debt-to-Equity Ratio compare to its sector?
AOS's Debt-to-Equity Ratio of 0.35x compares to a Industrials sector median of 0.72x, placing it in the 30th percentile.
Who are AOS's closest peers by Debt-to-Equity Ratio?
The closest Industrials peers by Debt-to-Equity Ratio include: PWR (0.65x), CHRW (0.79x), ADP (0.63x), RTX (0.56x), ROP (0.56x).
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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0.35x
Sector Median
0.72x
Sector Avg
0.79x
How AOS's Debt-to-Equity Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.