Debt-to-Equity Ratio

Twitter’s debt-to-equity ratio of 1.13x means the company has $1.13 of debt for every $1 of shareholder equity, indicating it relies heavily on borrowed funds rather than owner investment.

That ratio sits far above the Communication Services sector median of 0.36x, placing Twitter in the 89th percentile of its peer group, meaning it carries more debt than nearly nine out of ten competitors. No trend data is available: both the year-over-year and quarter-over-quarter changes are listed as N/A, and there are no historical values beyond the single current figure. Without a trend, an investor cannot determine whether leverage is rising or falling, but the elevated level alone signals higher fixed-interest obligations and greater financial vulnerability. This combination of a high absolute ratio with no history to suggest improvement adds risk, as any revenue shortfall would make debt service more difficult. The metric therefore directly supports the overall CAUTIOUS verdict, since excessive leverage amplifies downside exposure and reduces the margin of safety for shareholders.

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