VLTONEUTRAL

VLTO Debt-to-Equity Ratio Analysis

1.09x

Updated 465h ago·SEC filings & market data

Key Takeaway

A Debt-to-Equity Ratio of 1.09x means the company uses $1.09 of debt for every $1 of shareholder equity, indicating the balance between borrowed funds and owned capital.

Sector Performance

67th percentile

VLTO

1.09x

Sector Median

0.74x

Sector Avg

2.51x

Prior Period

0.89x(Jul 2026)

↓ Declining

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Deep Analysis

A Debt-to-Equity Ratio of 1.09x means the company uses $1.09 of debt for every $1 of shareholder equity, indicating the balance between borrowed funds and owned capital.

This is above the sector median of 0.74x, placing the company in the 67th percentile among peers, so it carries more leverage than most. The year-over-year change is N/A, but the quarter-over-quarter change is +22.5%, moving from 0.89x to 1.09x in the most recent period. This combination of a higher-than-median level and a sharp quarterly increase points to added financial risk, as rising debt relative to equity can strain future cash flow and increase vulnerability to higher interest rates. However, the absolute ratio is still moderate, and the increase may reflect a strategic move to fund growth, creating some opportunity for upside if the capital is deployed efficiently. This mixed picture supports the overall NEUTRAL verdict, as the elevated and rising leverage does not clearly justify a bullish or bearish stance.

Frequently Asked Questions

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

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.

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

The closest peers by Debt-to-Equity Ratio include: TAP (0.76x), PCAR (0.72x), O (0.78x), PRU (0.78x), KIM (0.85x).

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Learn More About Debt-to-Equity Ratio

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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.