SLMNEUTRAL

SLM Debt-to-Equity Ratio Analysis

2.36x

Updated 83h ago·SEC filings & market data

Key Takeaway

The debt-to-equity ratio compares a company’s total liabilities to its shareholders’ equity, showing how much leverage it uses to fund operations.

Sector Performance

89th percentile

SLM

2.36x

Sector Median

0.74x

Sector Avg

2.52x

Prior Period

2.53x(Jul 2026)

↑ Improving

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Deep Analysis

The debt-to-equity ratio compares a company’s total liabilities to its shareholders’ equity, showing how much leverage it uses to fund operations.

At 2.36x, SLM carries $2.36 of debt for every $1 of equity, meaning creditors provide more capital than owners. This is far above the sector median of 0.73x, placing SLM in the 90th percentile among peers, so its leverage is much higher than most comparable firms. The year-over-year change is not available, but quarter-over-quarter the metric fell 6.7%, from 2.53x to 2.36x, indicating modest deleveraging in the latest period. The combination of a high absolute debt load with a recent decline suggests reduced short-term risk, yet the level remains elevated and leaves limited cushion against earnings shocks. This metric leans against a bullish case, but the improving trend does not overturn the overall NEUTRAL stance, as it neither strongly confirms nor fully contradicts the balanced verdict.

Frequently Asked Questions

What does the Debt-to-Equity Ratio tell investors about SLM?

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.

Who are SLM's closest peers by Debt-to-Equity Ratio?

The closest peers by Debt-to-Equity Ratio include: W (-1.00x), MSCI (-2.37x), SBAC (-2.75x), LCID (-3.08x), TDG (-3.41x).

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Learn More About Debt-to-Equity Ratio

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Learn how to spot a debt problem in stocks using D/E, interest coverage, and net debt/EBITDA ratios. Real examples from META and MSFT, plus danger thresholds you need to know.

Debt/Equity Ratio: How Much Debt Is Too Much?

The debt to equity ratio explained: why context, interest coverage, and sector norms matter far more than the raw number when assessing debt risk.

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.