Debt-to-Equity Ratio

The Debt-to-Equity Ratio compares a company’s total debt to its shareholders’ equity; a ratio of 0.25x means MHK uses $0.25 of debt for every $1 of equity, indicating relatively low leverage.

Among sector peers, the median ratio is 0.73x, placing MHK in the 21st percentile — meaning about 79% of peers carry more debt relative to equity. The year-over-year change is not available, but the quarter-over-quarter change is +177.8%, as the ratio rose from 0.09x to 0.25x. The combination of a low absolute ratio with a sharp upward trend suggests the company is rapidly adding debt, which could indicate a shift toward higher financial risk even though the current level remains conservative. This rising leverage introduces some uncertainty for investors, but the level is still well below the sector median. The overall NEUTRAL verdict on MHK is supported: the low ratio implies stability, while the sudden increase tempers any bullish view, keeping the outlook balanced.

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