Debt-to-Equity Ratio

The Debt-to-Equity Ratio of 3.53x means STX uses $3.53 of debt for every $1 of shareholder equity — indicating a high reliance on borrowed money to fund operations.

This places it far above its sector median of 0.73x and in the 96th percentile among peers, meaning only 4% of peer companies have higher leverage. The year-over-year change is not available, but the quarter-over-quarter decline of -7.6% (from 3.82x to 3.53x) shows the company reduced its debt relative to equity in the most recent period. Despite the downward move, the absolute level of 3.53x remains very elevated versus the sector, suggesting continued financial risk. This combination of a dangerously high ratio with a recent improvement points to a slow de-leveraging trend but does not yet signal a safe balance sheet. The metric strongly supports the overall CAUTIOUS verdict, as the excessive debt load leaves STX vulnerable to rising interest costs or earnings shocks.

Frequently Asked Questions

Closest Sector Peers