LICAUTIOUS

LI Debt-to-Equity Ratio Analysis

0.14x

Higher than 13% of Consumer Cyclical sector peers

Updated 275h ago·SEC filings & market data

Key Takeaway

A Debt-to-Equity Ratio of 0.14x means the company has $0.14 of debt for every $1 of shareholder equity, indicating low financial leverage.

Sector Performance

13th percentile

0.14x

Sector Median

0.47x

Sector Avg

2.02x

Prior Period

0.25x(May 2026)

↑ Improving

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Deep Analysis

A Debt-to-Equity Ratio of 0.14x means the company has $0.14 of debt for every $1 of shareholder equity, indicating low financial leverage.

This is far below the sector median of 0.47x, and the 20th percentile rank shows it carries less debt than roughly 80% of its Consumer Cyclical peers. The trend data is not available: the year-over-year change is N/A, the quarter-over-quarter change is N/A, and no historical values beyond the current 0.14x were provided. With a low ratio but no direction, the level implies reduced default risk, yet the absence of trend information leaves momentum unknown. This metric supports the overall CAUTIOUS verdict because low leverage provides a financial cushion, but the lack of trend data does not justify upgrading the view. The low debt load is a stable strength, but the cautious stance remains appropriate given the unmeasured trajectory.

Frequently Asked Questions

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

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 LI's Debt-to-Equity Ratio compare to its sector?

LI's Debt-to-Equity Ratio of 0.14x compares to a Consumer Cyclical sector median of 0.47x, placing it in the 13th percentile.

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

The closest Consumer Cyclical peers by Debt-to-Equity Ratio include: BOOT (0.59x), CAVA (0.62x), BWA (0.69x), GME (0.71x), SG (0.73x).

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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.