Debt-to-Equity Ratio

SRE’s current Debt-to-Equity Ratio of 1.13x means the company has $1.13 of debt for every $1.00 of shareholder equity, indicating a moderate reliance on borrowed funds.

This ratio sits well above the sector median of 0.73x, placing SRE in the 69th percentile among its peers—meaning it uses more debt than about two-thirds of comparable companies. Over the last eight quarters, the metric has been stable, but the most recent quarter shows a sharp quarter-over-quarter increase of +22.8% (from 0.92x to 1.13x); the year-over-year change is not available. The combination of a debt level above the sector median and a rising short-term trend introduces additional financial risk, as higher leverage can pressure earnings if interest costs rise. At the same time, the long-term stability suggests the company has managed debt consistently, which may offset some near-term uncertainty. This metric partly supports the overall NEUTRAL verdict: the elevated debt-level relative to peers adds caution, but the stable historical pattern prevents a strongly bearish stance.

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