DKNG Debt-to-Equity Ratio Analysis

DKNG’s debt-to-equity ratio of 3.22x means the company carries $3.22 of debt for every $1 of shareholder equity, a measure of financial leverage.

That is far above the sector median of 0.73x, placing it in the 93rd percentile among peers, so most competitors operate with much less debt relative to equity. The year-over-year change is not available, but the quarter-over-quarter change is +6.3%, rising from 3.03x to 3.22x, showing debt load is increasing. A high and rising ratio like this means DKNG has limited cushion against downturns and higher interest costs, which can pressure profits. This combination of an elevated level and upward trend points to elevated financial risk, potentially limiting upside if cash flows weaken. This metric directly supports the overall cautious verdict, as the increasing leverage adds a layer of concern beyond the company’s operating outlook.

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