Debt-to-Equity Ratio

A company’s debt-to-equity ratio compares its total liabilities to shareholders’ equity, so a ratio of 1.68x means Wolfspeed uses $1.68 of debt for every $1.00 of equity.

This is far above the Technology sector median of 0.27x, placing the company in the 90th percentile among sector peers. Over the last eight quarters the trend has been stable, with no year-over-year change reported and a quarter-over-quarter decrease of 5.6%. The combination of a very high debt level and a stable trend suggests elevated financial leverage is persistent, which increases investment risk if earnings decline but also signals management is not adding more debt. This metric contradicts the overall NEUTRAL verdict—the excessive leverage relative to peers clearly indicates a higher risk profile that would typically warrant a more cautious stance.

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