T Debt-to-Equity Ratio Analysis

The Debt-to-Equity Ratio measures how much a company relies on borrowed money versus shareholder capital to fund its operations.

At 1.30x, T uses $1.30 in debt for every $1 of equity, indicating moderate leverage. This ratio is well above the sector median of 0.73x, placing T in the 74th percentile among peers — meaning 74% of peers have lower debt relative to equity. Although the current reading is elevated, the trend over the last eight quarters is decreasing, with the most recent four values (1.30x, 1.26x, 1.23x, 1.50x) showing a general decline. However, the quarter-over-quarter change was +3.2%, and year-over-year data is not available, so the most recent quarter reversed some of the prior downward movement. The combination of a high level relative to peers but a longer-term decreasing trend suggests that deleveraging is underway, which could reduce financial risk if it continues, but the recent uptick warrants monitoring. This metric, showing both above-average leverage and an inconsistent trend, neither strongly supports nor contradicts the overall NEUTRAL verdict on the stock.

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