Debt-to-Equity Ratio
Higher than 67% of Industrials sector peers
Updated 270h ago
Sector Performance
67th percentileROK
1.05x
Sector Median
0.72x
Sector Avg
0.79x
Deep Analysis
The debt-to-equity ratio compares a company’s total liabilities to its shareholders’ equity, measuring how much debt it uses to fund operations relative to its own capital.
At 1.05x, ROK has $1.05 of debt for every $1 of equity, meaning it carries more leverage than the typical industrial company. The sector median is 0.72x, and ROK ranks in the 69th percentile among peers—indicating higher financial risk than about two-thirds of similar firms. Over the latest quarter, the ratio fell 8.7% (from 1.15x to 1.05x), and the eight-quarter trend is decreasing, though no year-over-year change is available. The combination of a still-elevated level with a declining trend suggests leverage is being reduced, potentially improving the company’s risk profile over time, but it remains above the sector norm. This metric supports the overall NEUTRAL verdict: the improvement is positive, yet the above-median ranking keeps the stock from being clearly undervalued or overleveraged.
Frequently Asked Questions
What does the Debt-to-Equity Ratio tell investors about ROK?
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 ROK's Debt-to-Equity Ratio compare to its sector?
ROK's Debt-to-Equity Ratio of 1.05x compares to a Industrials sector median of 0.72x, placing it in the 67th percentile.
Who are ROK's closest peers by Debt-to-Equity Ratio?
The closest Industrials peers by Debt-to-Equity Ratio include: PWR (0.65x), CHRW (0.79x), ADP (0.63x), RTX (0.56x), ROP (0.56x).
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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1.05x
Sector Median
0.72x
Sector Avg
0.79x
How ROK's Debt-to-Equity Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.