Debt-to-Equity Ratio

Quanta Services' debt-to-equity ratio of 0.65x means the company uses $0.65 of debt for every $1.00 of shareholders' equity, a measure of financial leverage.

This level is slightly below the sector median of 0.72x, placing the firm in the 48th percentile among Industrials peers—essentially in the middle of the pack. The year-over-year change is not available, but the ratio jumped 441.7% quarter-over-quarter from 0.12x to 0.65x, indicating a sharp increase in debt relative to equity in the most recent period. While the absolute ratio remains moderate and below the sector average, the sudden rise suggests the company took on substantial debt, which could elevate short-term financial risk if earnings do not keep pace. This combination of a near-average level but a steep upward trend implies a need for caution, as the recent leverage increase may signal a shift in capital structure or a large acquisition. The metric does not contradict the overall NEUTRAL verdict: the current leverage is unremarkable compared to peers, but the rapid change warrants monitoring rather than strong bullish or bearish conviction.

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