Debt-to-Equity Ratio

The debt-to-equity ratio compares a company’s total liabilities to its shareholders’ equity; a 0.72x ratio means British American Tobacco uses $0.72 of debt for every $1 of equity, indicating moderate leverage.

This is above the sector median of 0.68x, placing the company in the 67th percentile among Consumer Defensive peers—meaning it carries more debt than two-thirds of them. The year-over-year change is not available, but the quarter-over-quarter change shows a -1.4% decline, from 0.73x to 0.72x. While the ratio sits above the median, the slight downward trend suggests the company is incrementally reducing debt relative to equity, which can lower financial risk. For an investor, the combination of a moderately high but declining ratio implies acceptable leverage with a small improvement in financial stability. This metric supports the overall BULLISH verdict, as the manageable debt level and improving trend align with a positive view on the stock.

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