Debt-to-Equity Ratio
Higher than 35% of Financial Services sector peers
Updated 21h ago
Sector Performance
35th percentilePFG
0.33x
Sector Median
0.41x
Sector Avg
0.70x
Deep Analysis
The debt-to-equity ratio measures how much a company relies on borrowed money versus shareholder funds to finance its operations.
Principal Financial Group's current ratio of 0.33x means it uses only $0.33 of debt for every $1 of equity, indicating a conservative capital structure. That ratio sits below the Financial Services sector median of 0.41x, placing PFG in the 35th percentile among peers — meaning roughly 65% of its sector competitors have higher leverage. The metric has been perfectly stable over the past eight quarters, with no change year-over-year or quarter-over-quarter (both +0.0%). A low, stable debt level combined with no upward trend suggests minimal financial risk from leverage, as the company is not taking on additional debt to fund growth. This steady, conservative positioning supports the overall NEUTRAL verdict by not introducing either a hidden risk or a compelling advantage tied to debt management.
Frequently Asked Questions
What does the Debt-to-Equity Ratio tell investors about PFG?
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 PFG's Debt-to-Equity Ratio compare to its sector?
PFG's Debt-to-Equity Ratio of 0.33x compares to a Financial Services sector median of 0.41x, placing it in the 35th percentile.
Who are PFG's closest peers by Debt-to-Equity Ratio?
The closest Financial Services peers by Debt-to-Equity Ratio include: RJF (0.43x), AIZ (0.38x), SPGI (0.44x), COF (0.45x), AFL (0.35x).
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.
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0.33x
Sector Median
0.41x
Sector Avg
0.70x
How PFG's Debt-to-Equity Ratio compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.