Debt-to-Equity Ratio

The debt-to-equity ratio compares a company’s total liabilities to shareholders’ equity, and KDP’s current 1.02x indicates it uses roughly equal amounts of debt and equity to finance its operations.

Among Consumer Defensive peers, this ratio sits at the 75th percentile, well above the sector median of 0.73x, meaning KDP carries more leverage than most comparable firms. Trend data is not available: the year-over-year change and quarter-over-quarter change are both reported as N/A, and no historical quarterly values are provided. With a high level of debt relative to peers and no discernible trend to judge direction, the risk lies in KDP’s greater reliance on borrowed funds, which could amplify earnings volatility if interest costs rise. The lack of trend information makes it impossible to assess whether leverage is improving or worsening. This elevated debt-to-equity ratio contradicts the overall NEUTRAL verdict, as it points to above-average financial risk that typically warrants a more cautious view.

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