Debt-to-Equity Ratio

The debt-to-equity ratio measures how much debt a company uses relative to its shareholders' equity — a lower number means less reliance on borrowed money.

At 0.15x, Nu’s ratio is far below the sector median of 0.71x, placing it in the 5th percentile among Financial Services peers, meaning only 5% of competitors have a lower ratio. The metric has been decreasing over the last eight quarters, with a year-over-year change not available but a quarter-over-quarter decline of 40.0% from the prior period’s 0.25x. A low ratio combined with a downward trend indicates the company is reducing its leverage, which lowers financial risk and strengthens its balance sheet. This supports the overall BULLISH verdict because low and falling debt exposure enhances stability and positions the firm to weather downturns or seize growth opportunities without heavy debt burdens.

Frequently Asked Questions

Closest Sector Peers