TCSCAUTIOUS

TCS Debt-to-Equity Ratio Analysis

5.03x

Higher than 95% of Consumer Cyclical sector peers

Updated 2531h ago·SEC filings & market data

Key Takeaway

The current Debt-to-Equity Ratio of 5.03x means the company uses $5.03 in debt for every $1 of shareholders' equity, showing heavy reliance on borrowed funds.

Sector Performance

95th percentile

TCS

5.03x

Sector Median

0.47x

Sector Avg

1.84x

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Deep Analysis

The current Debt-to-Equity Ratio of 5.03x means the company uses $5.03 in debt for every $1 of shareholders' equity, showing heavy reliance on borrowed funds.

This is far above the sector median of 0.75x, placing TCS in the 90th percentile among Consumer Cyclical peers—meaning it has more debt than 90% of similar companies. The trend data is not available, with both the year-over-year change and quarter-over-quarter change listed as N/A, so we cannot assess whether leverage is increasing or decreasing. A very high debt level combined with no trend information leaves investors with elevated uncertainty and risk, especially in a cyclical sector where earnings can fluctuate. This metric directly supports the overall CAUTIOUS verdict, as the extreme leverage highlights a fragile financial structure that could amplify losses during downturns or if interest costs rise.

Frequently Asked Questions

What does the Debt-to-Equity Ratio tell investors about TCS?

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 TCS's Debt-to-Equity Ratio compare to its sector?

TCS's Debt-to-Equity Ratio of 5.03x compares to a Consumer Cyclical sector median of 0.47x, placing it in the 95th percentile.

Who are TCS's closest peers by Debt-to-Equity Ratio?

The closest Consumer Cyclical peers by Debt-to-Equity Ratio include: SKX (0.47x), ROL (0.49x), BOOT (0.59x), CAVA (0.62x), BWA (0.69x).

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Learn More About Debt-to-Equity Ratio

How to Spot a Debt Problem Before It Hits the Stock Price

Learn how to spot a debt problem in stocks using D/E, interest coverage, and net debt/EBITDA ratios. Real examples from META and MSFT, plus danger thresholds you need to know.

Debt/Equity Ratio: How Much Debt Is Too Much?

The debt to equity ratio explained: why context, interest coverage, and sector norms matter far more than the raw number when assessing debt risk.

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.