Debt-to-Equity Ratio

The debt-to-equity ratio compares a company’s total debt to its shareholders’ equity, measuring how much debt it uses to finance operations.

At 5.99x, TRGP carries far more debt than equity, signaling higher financial leverage than most peers—the sector median is 0.72x, placing TRGP in the 98th percentile for leverage among its industry. The year-over-year change is not available, but the ratio has edged down 1.8% quarter-over-quarter from 6.10x to 5.99x. The combination of a very high ratio with a small decline suggests that while leverage is extreme, the slight improvement may moderate some short-term risk, but the overall level remains a persistent warning for investors. This elevated debt load increases vulnerability to rising interest costs or revenue shortfalls, offsetting any potential benefit from the marginal trend. The high leverage and high percentile rank contradict the overall NEUTRAL verdict by pointing to a clearly elevated risk profile that would normally weigh against a neutral stance.

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