VRSN Debt-to-Equity Ratio Analysis

The debt-to-equity ratio measures a company's total liabilities relative to shareholders' equity, where a negative value like -1.04x indicates that liabilities exceed equity, often meaning the company has accumulated losses greater than its invested capital.

Compared to sector peers, the sector median is 0.73x, and VRSN sits in the 7th percentile—far below most peers, implying a much higher reliance on debt or negative equity. The year-over-year change is not available, but the quarter-over-quarter change is -28.4%, meaning the ratio became more negative from the prior period, worsening the debt burden relative to equity. A negative ratio combined with a deteriorating trend signals elevated financial risk, as the company has no equity cushion to absorb losses. This metric contradicts the overall NEUTRAL verdict, because extreme leverage and a worsening trend typically indicate a more cautious or bearish outlook.

Frequently Asked Questions