LCID Debt-to-Equity Ratio Analysis

A debt-to-equity ratio measures how much a company relies on debt versus shareholder equity.

LCID's current ratio of -3.08x means shareholders' equity is negative — liabilities exceed assets, a sign of financial distress. That places it far below the sector median of 0.74x, sitting in the 4th percentile among peers, meaning almost all competitors have healthier capital structures. The year-over-year change is N/A, so no annual comparison is available, but quarter-over-quarter the ratio improved by +60.7%, moving from -7.84x to -3.08x. While the improvement is a positive step, the level remains deeply negative, so the combination still points to elevated financial risk rather than opportunity. This metric directly supports the overall CAUTIOUS verdict, as the capital structure remains a major vulnerability.

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