Debt-to-Equity Ratio

Applied Digital Corp.'s debt-to-equity ratio of 1.70x means that for every dollar of shareholder equity, the company has $1.70 of debt—a measure of financial leverage that indicates higher reliance on borrowing.

This ratio sits far above the Technology sector median of 0.27x, placing APLD in the 89th percentile among peers, meaning it carries more debt relative to equity than nearly 9 out of 10 sector companies. The year-over-year change and quarter-over-quarter change are both marked as not available (N/A), so no trend direction can be assessed from the data provided. With a high current level and no trend information, the lack of a downward trajectory leaves the risk of elevated leverage unconfirmed, offering neither a clear opportunity nor a definitive red flag. This metric does not contradict the overall NEUTRAL verdict, as the high debt ratio suggests caution but cannot be weighed against past movement to shift the rating to bearish.

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