Debt-to-Equity Ratio
Higher than 21% of Consumer Cyclical sector peers
Updated 24h ago
Sector Performance
21th percentileLI
0.25x
Sector Median
0.77x
Sector Avg
2.56x
Deep Analysis
With a debt-to-equity ratio of 0.25x, Li Auto finances only $0.25 of debt for every $1 of shareholders’ equity — a low figure that signals conservative use of borrowing.
This is well below the Consumer Cyclical sector median of 0.77x and places the company at the 21st percentile among peers, meaning 79% of sector companies have higher leverage. Trend data is not available: both the year-over-year change and quarter-over-quarter change are listed as N/A, so no directional insight can be drawn from recent shifts. The combination of a very low debt level with an absent trend suggests limited near-term refinancing or distress risk, but also offers no evidence of improving or deteriorating financial leverage. This metric supports the overall NEUTRAL verdict — a low D/E ratio is neither a bullish nor a bearish signal on its own, and without trend context it does not strengthen or weaken the neutral stance.
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 0.25x compares to a Consumer Cyclical sector median of 0.77x, placing it in the 21th percentile.
Who are LI's closest peers by Debt-to-Equity Ratio?
The closest Consumer Cyclical peers by Debt-to-Equity Ratio include: GOEV (0.34x), ABNB (0.33x), MELI (0.33x), EVGO (0.32x), COLM (0.30x).
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.
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0.25x
Sector Median
0.77x
Sector Avg
2.56x
How LI's Debt-to-Equity Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.