Debt-to-Equity Ratio

Globant's debt-to-equity ratio of 0.17x means the company uses only $0.17 of debt for every $1 of shareholders' equity, indicating a conservative capital structure with low reliance on borrowed funds.

This is well below the Technology sector median of 0.27x, placing Globant in the 39th percentile among its peers — a lower debt burden than most in its industry. The ratio has been decreasing over the last eight quarters, with a quarter-over-quarter decline of 22.7% from the prior period’s 0.22x; year-over-year change data is not available. A low and falling debt-to-equity ratio reduces financial risk by limiting interest obligations and default potential, but it may also signal that the company is not aggressively leveraging debt to fuel expansion or acquisitions. This metric supports the overall NEUTRAL verdict because while the conservative leverage is reassuring, it does not alone indicate a catalyst for outperformance or undervaluation.

Frequently Asked Questions

Closest Sector Peers