Debt-to-Equity Ratio

The debt-to-equity ratio compares a company’s total debt to its shareholders’ equity, showing how much financing comes from borrowing versus owners’ funds.

At 1.16x, Builders FirstSource carries $1.16 in debt for every $1 of equity. This is above the sector median of 0.72x, placing the company in the 74th percentile among Industrials peers, meaning it uses more leverage than three-quarters of similar firms. The year-over-year change is not available, and the quarter-over-quarter change is also not available, so no trend can be assessed. Without a trend direction, the current elevated leverage suggests a higher risk from debt than the sector average, but there is no evidence of recent increases or decreases. This metric does not contradict the overall NEUTRAL verdict; while the higher debt ratio is a caution, the lack of trend data prevents it from being a decisive factor for downgrading or upgrading the stock.

Frequently Asked Questions

Closest Sector Peers