Debt-to-Equity Ratio

The Debt-to-Equity Ratio measures how much debt a company uses to finance its operations relative to shareholders' equity; a ratio of 1.35x means MercadoLibre has $1.35 of debt for every $1 of equity.

This is well above the Consumer Cyclical sector median of 0.47x, placing the company in the 78th percentile among peers. Over the last eight quarters, the ratio has been increasing overall, though the year-over-year change is not available; quarter over quarter, it dropped 20.6% from 1.70x to 1.35x. A high leverage level combined with a long-term upward trend suggests elevated financial risk, but the recent sharp decline may indicate management is reducing debt. This mixed picture—high relative leverage with a recent improvement—aligns with the overall NEUTRAL verdict, as the metric neither confirms a strong risk nor a clear improvement.

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