Debt-to-Equity Ratio

World Acceptance Corporation’s current Debt-to-Equity ratio of 1.67x means the company uses $1.67 in debt for every $1.00 of shareholder equity—a measure of financial leverage.

This is more than double the Financial Services sector median of 0.71x, placing WRLD in the 73rd percentile among its peers, indicating higher leverage than most comparable firms. The year-over-year change is not available, but the ratio surged 165.1% quarter-over-quarter from 0.63x to 1.67x, though longer-term trend data (last eight quarters) is also not available. The combination of a high absolute level relative to peers and a sharp recent increase implies elevated financial risk, as the company has quickly taken on more debt compared to equity. This higher leverage could pressure earnings if borrowing costs rise or cash flows weaken, presenting a potential downside risk. The metric contradicts the overall NEUTRAL verdict because the elevated and rapidly rising debt-to-equity ratio points to increased risk rather than a balanced outlook.

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