BACNEUTRAL

BAC Debt-to-Equity Ratio Analysis

1.28x

Higher than 63% of Financial Services sector peers

Updated 313h ago·SEC filings & market data

Key Takeaway

Bank of America’s Debt-to-Equity Ratio of 1.28x means that for every dollar of shareholder equity, the company has $1.28 in debt — a measure of how much the firm relies on borrowing relative to its own capital.

Sector Performance

63th percentile

BAC

1.28x

Sector Median

0.69x

Sector Avg

1.57x

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Deep Analysis

Compared to its sector, this is above the Financial Services median of 0.71x, placing BAC in the 61st percentile among peers, indicating a higher-than-average use of debt. The trend data is unavailable: year-over-year and quarter-over-quarter changes are both listed as N/A, so no direction can be inferred from recent history. The combination of an elevated debt level and no trend information suggests that while the current ratio implies greater financial leverage than most peers, the absence of a deteriorating or improving pattern leaves the risk unchanged for now. This metric does not directly contradict the overall BULLISH verdict, but the above-median leverage adds a layer of caution that a purely bullish investor would need to weigh against other factors.

Frequently Asked Questions

What does the Debt-to-Equity Ratio tell investors about BAC?

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 BAC's Debt-to-Equity Ratio compare to its sector?

BAC's Debt-to-Equity Ratio of 1.28x compares to a Financial Services sector median of 0.69x, placing it in the 63th percentile.

Who are BAC's closest peers by Debt-to-Equity Ratio?

The closest Financial Services peers by Debt-to-Equity Ratio include: V (0.67x), SCHW (0.67x), PRU (0.72x), COIN (0.58x), SPGI (0.43x).

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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.