Debt-to-Equity Ratio

The debt-to-equity ratio measures how much a company finances its operations through debt versus shareholder equity; a 1.84x ratio means NTAP has $1.84 in debt for every $1 of equity.

This is well above the sector median of 0.73x, placing NTAP in the 84th percentile among its peers — meaning it carries more leverage than 84% of comparable companies. Over the last eight quarters the trend has been stable, though the quarter-over-quarter decline of -8.9% shows a recent reduction in leverage; year-over-year change is not available. The combination of a high debt level (well above the sector) with a stable-to-slightly-decreasing trend suggests that while NTAP carries elevated financial risk compared to peers, the recent decline offers a modest improvement in balance sheet strength. This metric does not strongly contradict the overall NEUTRAL verdict, as the high leverage is a risk factor balanced by the stable trend and recent quarter-over-quarter improvement.

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