CHPT Debt-to-Equity Ratio Analysis

The Debt-to-Equity ratio measures a company's total liabilities divided by shareholders' equity; a negative value like -26.34x means the company has negative equity (liabilities exceed assets), which is a severe financial red flag.

Compared to sector peers, the sector median is 0.73x, and this stock sits at the 2nd percentile, indicating it has far more debt relative to equity than nearly all peers. The metric has been decreasing over the last eight quarters, with a quarter-over-quarter improvement of +3.8% (from -27.38x to -26.34x), though the year-over-year change is not available. The combination of an extremely negative level and a slight upward trend (becoming less negative) suggests that while the company is moving in the right direction, the risk remains high because negative equity implies potential insolvency. This metric directly supports the CAUTIOUS verdict, as a negative debt-to-equity ratio signals a precarious capital structure that warrants caution.

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