HOODNEUTRAL

Debt-to-Equity Ratio

1.44x

Higher than 68% of Financial Services sector peers

Updated 766h ago

Sector Performance

68th percentile

HOOD

1.44x

Sector Median

0.71x

Sector Avg

1.60x

📊

Deep Analysis

Robinhood's Debt-to-Equity Ratio of 1.44x means the company has $1.44 of debt for every $1 of shareholder equity, indicating it uses more borrowed funds relative to its own capital.

Compared to sector peers, this is above the Financial Services median of 0.63x, placing Robinhood in the 68th percentile — so its leverage is higher than roughly two-thirds of comparable firms. Trend data for this metric is unavailable: the year-over-year change, quarter-over-quarter change, and last eight quarters are all listed as N/A, so no directional pattern can be assessed. The combination of an elevated ratio (1.44x vs. 0.63x median) with no trend information suggests higher financial risk from leverage, but without a trajectory, investors cannot tell if leverage is increasing or decreasing. This metric supports the overall NEUTRAL verdict because the high debt level warrants caution, but the lack of trend data prevents a stronger bearish or bullish tilt.

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.

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

HOOD's Debt-to-Equity Ratio of 1.44x compares to a Financial Services sector median of 0.71x, placing it in the 68th percentile.

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

The closest Financial Services peers by Debt-to-Equity Ratio include: IBN (0.61x), COIN (0.59x), AMP (0.53x), HSBC (0.52x), COF (0.46x).

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.

Master HOOD's Valuation

Get the complete institutional research report covering all fundamental and technical metrics.

View full HOOD research report

Free account — no credit card

HOOD

1.44x

Sector Median

0.71x

Sector Avg

1.60x

How HOOD's Debt-to-Equity Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.