PCTYNEUTRAL

PCTY Debt-to-Equity Ratio Analysis

0.07x

Higher than 30% of Technology sector peers

Updated 83h ago·SEC filings & market data

Key Takeaway

PCTY's debt-to-equity ratio of 0.07x measures how much the company relies on borrowed money versus shareholder equity — a low number means minimal debt relative to equity.

Sector Performance

30th percentile

PCTY

0.07x

Sector Median

0.20x

Sector Avg

0.28x

Prior Period

0.11x(May 2026)

↑ Improving

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Deep Analysis

PCTY's debt-to-equity ratio of 0.07x measures how much the company relies on borrowed money versus shareholder equity — a low number means minimal debt relative to equity.

This ratio places PCTY in the 29th percentile among its Technology sector peers, well below the sector median of 0.27x, indicating significantly lower leverage than most comparable companies. No trend data is available because both the year-over-year change and quarter-over-quarter change are reported as "N/A," and there is only one historical value (0.07x) for the last eight quarters. The combination of an extremely low debt level with an absent trend suggests the company carries very little financial risk from debt, but the lack of movement makes it impossible to assess whether leverage is increasing or decreasing. This metric supports the NEUTRAL verdict: low debt reduces downside risk, yet without trend information, it neither signals a compelling opportunity nor a red flag that would shift the overall rating.

Frequently Asked Questions

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

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.

How does PCTY's Debt-to-Equity Ratio compare to its sector?

PCTY's Debt-to-Equity Ratio of 0.07x compares to a Technology sector median of 0.20x, placing it in the 30th percentile.

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

The closest Technology peers by Debt-to-Equity Ratio include: TSM (0.15x), PTC (0.41x), AVGO (0.74x), U (0.75x), AAPL (0.80x).

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Learn More About Debt-to-Equity Ratio

How to Spot a Debt Problem Before It Hits the Stock Price

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.