Debt-to-Equity Ratio

The debt-to-equity ratio compares a company’s total debt to its shareholders’ equity, measuring how much a business relies on borrowing versus its own funds.

At 0.34x, WAT uses far less debt than the sector median of 0.72x, placing it in the 27th percentile among peers—meaning 73% of sector companies have higher debt leverage. The metric has been stable over the last eight quarters, with no year-over-year change available and a quarter-over-quarter decrease of -5.6% from 0.36x to 0.34x. This combination of a low leverage level and a stable, slightly declining trend suggests a conservative capital structure with limited financial risk, offering a defensive quality but also potentially slower growth from debt-financed expansion. The low ratio supports a neutral verdict by indicating financial safety without signaling aggressive upside catalysts, aligning with the overall NEUTRAL assessment.

Frequently Asked Questions

Closest Sector Peers