HOODNEUTRAL

HOOD Debt-to-Equity Ratio Analysis

2.40x

Updated 107h ago·SEC filings & market data

Key Takeaway

The debt-to-equity ratio (total liabilities divided by shareholders’ equity) stands at 2.40x, meaning the company uses $2.40 of debt for every $1 of equity.

Sector Performance

90th percentile

HOOD

2.40x

Sector Median

0.74x

Sector Avg

2.52x

Prior Period

1.44x(Jul 2026)

↓ Declining

📊

Deep Analysis

The debt-to-equity ratio (total liabilities divided by shareholders’ equity) stands at 2.40x, meaning the company uses $2.40 of debt for every $1 of equity.

That is far above the sector median of 0.74x, placing HOOD in the 90th percentile among peers, so it carries more leverage than most comparable firms. The year-over-year change is not available, but quarter-over-quarter the ratio rose from 1.44x to 2.40x, a +66.7% increase; the 8-quarter trend direction is not available. This combination of a high absolute level and a sharp recent jump indicates elevated financial risk, since higher leverage amplifies both potential returns and losses. For an investor, the rising debt load suggests increased vulnerability to interest-rate or earnings shocks, though it also implies a turnaround or growth bet if the added debt funds productive assets. This metric contradicts the overall NEUTRAL verdict by pointing to above-normal risk, meaning the neutral stance should be viewed cautiously even if other factors balance the picture.

Frequently Asked Questions

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

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 HOOD's closest peers by Debt-to-Equity Ratio?

The closest peers by Debt-to-Equity Ratio include: W (-1.00x), MSCI (-2.37x), SBAC (-2.75x), LCID (-3.08x), TDG (-3.41x).

📚

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.