EDITCAUTIOUS

EDIT Debt-to-Equity Ratio Analysis

16.33x

Higher than 100% of Healthcare sector peers

Updated 2555h ago·SEC filings & market data

Key Takeaway

Editas Medicine's debt-to-equity ratio of 16.33x means the company has $16.33 of debt for every $1 of shareholder equity, indicating heavy reliance on borrowed funds.

Sector Performance

100th percentile

EDIT

16.33x

Sector Median

0.26x

Sector Avg

0.89x

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Deep Analysis

Editas Medicine's debt-to-equity ratio of 16.33x means the company has $16.33 of debt for every $1 of shareholder equity, indicating heavy reliance on borrowed funds.

This ratio sits far above the healthcare sector median of 0.45x, placing Editas in the 100th percentile among peers, meaning it has the highest leverage in its group. Trend data is not available: the year-over-year change is listed as N/A, and the quarter-over-quarter change is also N/A, so no direction can be assessed. Without a trend, the current extreme level alone signals elevated financial risk, as high debt can strain cash flows if revenue or earnings falter. This metric directly supports the overall CAUTIOUS verdict, because such outsized leverage relative to peers increases the company's vulnerability to interest costs and credit conditions.

Frequently Asked Questions

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

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.

How does EDIT's Debt-to-Equity Ratio compare to its sector?

EDIT's Debt-to-Equity Ratio of 16.33x compares to a Healthcare sector median of 0.26x, placing it in the 100th percentile.

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

The closest Healthcare peers by Debt-to-Equity Ratio include: BIO (0.17x), BIIB (0.34x), NTLA (0.13x), TECH (0.10x), BEAM (0.09x).

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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.