Debt-to-Equity Ratio

MCO’s debt-to-equity ratio of 2.33x means the company uses $2.33 of debt for every $1 of shareholder equity, indicating it relies heavily on borrowed funds to finance operations.

That ratio stands well above the sector median of 0.73x, placing MCO in the 88th percentile among its peers — meaning only 12% of sector companies carry more debt relative to equity. Trend data is not available: the year-over-year change and quarter-over-quarter change are both marked N/A, and the last eight quarters show no trend direction. Without a trend, the high debt level signals elevated financial risk, as interest payments can strain cash flow, especially if earnings weaken. This elevated leverage does not present a clear opportunity for capital appreciation from deleveraging, nor does it confirm an immediate threat, given the lack of trend data. The debt-to-equity ratio contradicts a NEUTRAL verdict by highlighting above-peer leverage, yet the absence of a deteriorating trend prevents a bearish tilt, so the overall neutral stance remains intact.

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