Debt-to-Equity Ratio
Higher than 100% of Communication Services sector peers
Updated 482h ago
Sector Performance
100th percentileSNAP
2.02x
Sector Median
0.32x
Sector Avg
0.46x
Deep Analysis
Snap Inc.'s debt-to-equity ratio of 2.02x means the company has $2.02 in debt for every $1 of shareholder equity, indicating a high reliance on borrowed funds compared to its own capital.
This ratio sits far above the Communication Services sector median of 0.35x, placing Snap in the 100th percentile among its peers, meaning it carries the highest debt burden in the sector. The metric shows no change because both the year-over-year and quarter-over-quarter figures are marked as N/A, and there are no historical trend data for the last eight quarters. Without any trend direction, the combination of an extremely high debt level and no information on whether it is rising or falling signals elevated financial risk, as the company is already heavily leveraged. This directly supports the overall CAUTIOUS verdict, since a debt-to-equity ratio of 2.02x — well above the sector norm — suggests higher vulnerability to interest rate changes or earnings downturns, reinforcing a cautious stance on the stock.
Frequently Asked Questions
What does the Debt-to-Equity Ratio tell investors about SNAP?
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 SNAP's Debt-to-Equity Ratio compare to its sector?
SNAP's Debt-to-Equity Ratio of 2.02x compares to a Communication Services sector median of 0.32x, placing it in the 100th percentile.
Who are SNAP's closest peers by Debt-to-Equity Ratio?
The closest Communication Services peers by Debt-to-Equity Ratio include: BIDU (0.32x), PINS (0.34x), META (0.36x), DASH (0.27x), YELP (0.21x).
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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2.02x
Sector Median
0.32x
Sector Avg
0.46x
How SNAP's Debt-to-Equity Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.