SCHW Debt-to-Equity Ratio Analysis

A debt-to-equity ratio of 0.74x means Schwab carries 74 cents of debt for every dollar of shareholder equity, indicating a moderate reliance on borrowed funds.

This matches the sector median of 0.74x exactly, placing the company at the 50th percentile among peers—neither more nor less leveraged than the typical firm. The year-over-year change is not available, but quarter-over-quarter the ratio rose 10.4%, from 0.67x to 0.74x, so leverage has increased over the most recent period. The combination of an average debt level with a rising trend suggests some added financial risk relative to prior quarters, though the absolute level remains in line with the industry. This slight upward movement does not create a clear competitive advantage or disadvantage, but it bears monitoring if the trend continues. The metric supports a NEUTRAL verdict because the ratio sits exactly at the sector norm, while the quarterly increase is too modest to shift the overall assessment to bullish or bearish.

Frequently Asked Questions

Closest Sector Peers