KHCCAUTIOUS

KHC Debt-to-Equity Ratio Analysis

0.50x

Updated 122h ago·SEC filings & market data

Key Takeaway

The debt-to-equity ratio measures how much a company relies on borrowed money versus shareholder funds to finance its operations.

Sector Performance

36th percentile

KHC

0.50x

Sector Median

0.73x

Sector Avg

0.14x

Prior Period

0.46x(May 2026)

↓ Declining

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Deep Analysis

The debt-to-equity ratio measures how much a company relies on borrowed money versus shareholder funds to finance its operations.

At 0.50x, KHC uses half as much debt as equity, which is below the sector median of 0.73x and places the company in the 36th percentile among its peers — meaning it carries less leverage than most. Trend data is limited: the year-over-year change is not available, but the quarter-over-quarter change shows an increase of +8.7%, from 0.46x to 0.50x. The combination of a low absolute debt level with a recent upward move suggests that while financial risk remains modest, the company is taking on more debt, which could signal a shift toward higher leverage. This rising trend introduces a note of caution even though the ratio itself is still favorable. Therefore, the metric partially contradicts the overall CAUTIOUS verdict — the low debt level alone would support a more bullish view, but the recent increase in borrowing aligns with the caution.

Frequently Asked Questions

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

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

The closest peers by Debt-to-Equity Ratio include: ETSY (-2.62x), MCK (-3.00x), TDG (-3.40x), VRSK (-3.81x), MAR (-4.04x).

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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.