Debt-to-Equity Ratio

A company’s debt-to-equity ratio compares how much it borrows (debt) to how much it owns outright (equity), so a higher ratio means more reliance on borrowed money.

At 1.28x, STZ carries more debt relative to equity than the typical sector peer, whose median is 0.72x; this places STZ in the 74th percentile among its peers, meaning it uses more leverage than about three-quarters of them. The trend data is not available — the year-over-year change is listed as N/A, and the quarter-over-quarter change is also N/A — so there is no history to judge whether leverage is rising or falling. Because the current ratio is elevated versus peers but we cannot see any recent direction, the risk is that STZ remains highly leveraged without a sign of reduction, which could pressure earnings if borrowing costs rise. However, the absence of a trend also means there is no evidence of deterioration, so the risk is tempered. This metric generally contradicts the NEUTRAL verdict, as above-median leverage often signals higher financial risk, but without a trend the overall view remains balanced.

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