Debt-to-Equity Ratio

The debt-to-equity ratio compares a company’s total liabilities to its shareholders’ equity, showing how much debt is used to finance assets.

At 0.38x, FANG has $0.38 in debt for every $1.00 of equity, which is below the sector median of 0.73x and places it in the 28th percentile among peers — meaning most competitors carry higher debt relative to equity. The year-over-year change is not available, but the quarter-over-quarter change is +1800.0%, jumping from 0.02x to 0.38x. While the absolute level remains conservative, the sharp quarterly increase signals a sudden rise in debt or drop in equity, which could indicate a change in financial strategy or a one-time event. This combination of low level but explosive trend implies a recent escalation in risk that investors should monitor closely. The metric does not contradict the overall NEUTRAL verdict, as the low absolute ratio still leaves room for flexibility, but the spike introduces uncertainty that tempers any positive assessment.

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