Debt-to-Equity Ratio

The debt-to-equity ratio compares a company’s total liabilities to its shareholders’ equity, showing how much debt is used to fund operations.

LHX currently has a ratio of 0.58x, which is below the sector median of 0.73x and places it in the 41th percentile among peers — meaning it uses less debt relative to equity than most companies in its sector. Year-over-year change is not available, but quarter over quarter the ratio surged 427.3%, jumping from 0.11x to 0.58x. Although the current level is moderate and under the sector median, the sharp quarterly increase signals that LHX added a large amount of debt or reduced equity in a short period, raising the risk profile. This combination of a low but rapidly climbing ratio introduces uncertainty about future interest costs and financial flexibility. The sharp rise in leverage runs counter to the NEUTRAL overall verdict, as it points to increased financial risk that investors should monitor, though the ratio itself remains within a reasonable range.

Frequently Asked Questions

Closest Sector Peers