Debt-to-Equity Ratio

Wells Fargo's current Debt-to-Equity Ratio of 1.21x means that for every $1 of shareholder equity, the company carries $1.21 in debt — a measure of how much the firm relies on borrowing versus its own funds.

Compared to the sector median of 0.73x, WFC's ratio sits at the 71st percentile among peers, indicating it uses more leverage than the majority of similar companies. The year-over-year change is not available, but over the most recent quarter the metric dropped by 52.2%, from 2.53x to 1.21x, a sharp reduction in reliance on debt. While the current level is still above the sector norm, the steep one-quarter decline suggests the company is actively deleveraging, which could lower financial risk going forward. This combination of above-median leverage combined with a fast-improving trend presents a mixed picture: elevated risk relative to peers, but with momentum toward a more conservative capital structure. The overall NEUTRAL verdict is supported because the metric neither signals clear strength (given the above-median level) nor clear weakness (given the rapid improvement).

Frequently Asked Questions

Closest Sector Peers