Debt-to-Equity Ratio

A debt-to-equity ratio of 0.68x means that for every dollar of shareholder equity, REI has 68 cents of debt, indicating the company relies more on equity than borrowing to finance its operations.

Compared to the Energy sector median of 0.74x, REI’s ratio is lower, placing it at the 45th percentile among peers — meaning 55% of sector companies have lower leverage. The year-over-year change is not available, but the quarter-over-quarter change shows a decline of -1.4% from the prior quarter’s 0.69x, suggesting a slight deleveraging. The combination of a below-median ratio and a decreasing trend implies lower financial risk relative to peers, as the company is reducing its reliance on debt. This metric supports the cautious overall verdict because while leverage is moderate and improving, the cautious stance likely reflects other concerns such as sector volatility or growth prospects.

Frequently Asked Questions

Closest Sector Peers