DOWNEUTRAL

DOW Debt-to-Equity Ratio Analysis

1.07x

Updated 57h ago·SEC filings & market data

Key Takeaway

The debt-to-equity ratio measures how much debt a company uses relative to its shareholders' equity, so a value of 1.07x means debt is 7% larger than equity.

Sector Performance

65th percentile

DOW

1.07x

Sector Median

0.74x

Sector Avg

2.51x

Prior Period

1.19x(Jul 2026)

↑ Improving

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Deep Analysis

The debt-to-equity ratio measures how much debt a company uses relative to its shareholders' equity, so a value of 1.07x means debt is 7% larger than equity.

This sits above the sector median of 0.74x, placing DOW in the 65th percentile of peers, indicating higher leverage than most competitors. The year-over-year change is not available, but quarter-over-quarter the ratio fell 10.1%, moving from 1.19x to 1.07x. The combination of a still-above-median level with a clear quarterly decline suggests leverage is being reduced, lowering financial risk even as the balance sheet remains more stretched than the typical peer. For an investor, this improving trend could offer a modest safety buffer, though the current level still warrants caution. This metric supports the overall NEUTRAL verdict: the debt load is not alarming enough to be bearish, yet it is too high relative to the sector to be a bullish factor.

Frequently Asked Questions

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

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.

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

The closest peers by Debt-to-Equity Ratio include: TAP (0.76x), PCAR (0.72x), O (0.78x), PRU (0.78x), KIM (0.85x).

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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.