MHKNEUTRAL

MHK Debt-to-Equity Ratio Analysis

0.22x

Updated 5h ago·SEC filings & market data

Key Takeaway

The Debt-to-Equity Ratio measures a company’s total liabilities against shareholders’ equity, and MHK’s current 0.22x means it uses far more equity than debt to fund its operations.

Sector Performance

17th percentile

MHK

0.22x

Sector Median

0.74x

Sector Avg

2.51x

Prior Period

0.25x(Jul 2026)

↑ Improving

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Deep Analysis

The Debt-to-Equity Ratio measures a company’s total liabilities against shareholders’ equity, and MHK’s current 0.22x means it uses far more equity than debt to fund its operations.

This is much lower than the sector median of 0.74x, placing MHK at the 17th percentile among peers, so most comparable companies carry more leverage. The 8-quarter trend direction is not available, and the year-over-year change is also N/A; however, the quarter-over-quarter change is -12.0%, with the ratio falling from 0.25x to 0.22x in the most recent period. That combination of a low and declining ratio suggests reduced financial leverage, which lowers bankruptcy and interest-payment risk but may also signal slower use of debt for expansion. For an investor, this implies a defensive profile with limited downside from debt stress, yet it offers no clear catalyst for higher returns. This metric supports the overall NEUTRAL verdict, as it confirms financial stability without indicating a strong opportunity or a major risk.

Frequently Asked Questions

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

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.

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

The closest peers by Debt-to-Equity Ratio include: TAP (0.76x), PCAR (0.72x), O (0.78x), PRU (0.78x), KIM (0.85x).

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Learn More About Debt-to-Equity Ratio

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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.