VALENEUTRAL

VALE Debt-to-Equity Ratio Analysis

0.59x

Higher than 87% of Basic Materials sector peers

Updated 445h ago·SEC filings & market data

Key Takeaway

Vale's debt-to-equity ratio of 0.59x means the company uses $0.59 in debt for every $1 of shareholder equity, a common measure of financial leverage.

Sector Performance

87th percentile

VALE

0.59x

Sector Median

0.10x

Sector Avg

0.29x

Prior Period

0.51x(May 2026)

↓ Declining

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Deep Analysis

Vale's debt-to-equity ratio of 0.59x means the company uses $0.59 in debt for every $1 of shareholder equity, a common measure of financial leverage.

That ratio far exceeds the Basic Materials sector median of 0.10x, placing Vale in the 87th percentile among its peers—meaning it carries more debt relative to equity than 87% of comparable firms. The year-over-year change is not available, but the quarter-over-quarter increase of +15.7% (from 0.51x to 0.59x) shows leverage rose in the most recent period. A debt-to-equity ratio well above the sector median already signals higher financial risk, and the recent uptick adds to that concern by indicating the company is taking on more debt relative to equity. This combination of a high level and a rising trend suggests increased risk for investors, as it may limit financial flexibility or amplify losses during downturns. The metric contradicts the overall NEUTRAL verdict, because the elevated and increasing debt ratio points to a risk profile that would typically warrant a cautious or negative view.

Frequently Asked Questions

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

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

VALE's Debt-to-Equity Ratio of 0.59x compares to a Basic Materials sector median of 0.10x, placing it in the 87th percentile.

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

The closest Basic Materials peers by Debt-to-Equity Ratio include: PAAS (0.10x), AG (0.11x), RGLD (0.08x), KGC (0.08x), CDE (0.07x).

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Learn More About Debt-to-Equity Ratio

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

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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.