XPONEUTRAL

XPO Debt-to-Equity Ratio Analysis

1.77x

Higher than 88% of Industrials sector peers

Updated 1067h ago·SEC filings & market data

Key Takeaway

XPO's current debt-to-equity ratio of 1.77x means the company uses $1.77 of debt for every $1 of shareholder equity, indicating a relatively high reliance on borrowed funds.

Sector Performance

88th percentile

XPO

1.77x

Sector Median

0.63x

Sector Avg

0.71x

Prior Period

2.18x(May 2026)

↑ Improving

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Deep Analysis

XPO's current debt-to-equity ratio of 1.77x means the company uses $1.77 of debt for every $1 of shareholder equity, indicating a relatively high reliance on borrowed funds.

This ratio sits well above the industrials sector median of 0.72x, placing XPO in the 85th percentile among its peers, meaning it is more leveraged than 85% of comparable companies. A year-over-year change is not available, but the ratio decreased 18.8% quarter over quarter from 2.18x to 1.77x, showing a recent reduction in leverage. The combination of a high debt-to-equity level with a sharp quarterly decline suggests that while the company still carries elevated financial risk, it is actively reducing that risk, which could improve its financial flexibility. This mixed picture — a still-high level paired with a favorable trend — does not clearly contradict the overall NEUTRAL verdict, as the metric signals caution but also a move toward balance.

Frequently Asked Questions

What does the Debt-to-Equity Ratio tell investors about XPO?

Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.

How is the Debt-to-Equity Ratio calculated?

Debt-to-Equity Ratio is calculated as: Total Debt / Shareholders' Equity.

How does XPO's Debt-to-Equity Ratio compare to its sector?

XPO's Debt-to-Equity Ratio of 1.77x compares to a Industrials sector median of 0.63x, placing it in the 88th percentile.

Who are XPO's closest peers by Debt-to-Equity Ratio?

The closest Industrials peers by Debt-to-Equity Ratio include: ADP (0.63x), PWR (0.63x), ROP (0.61x), RTX (0.56x), CHRW (0.79x).

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Learn More About Debt-to-Equity Ratio

How to Spot a Debt Problem Before It Hits the Stock Price

Learn how to spot a debt problem in stocks using D/E, interest coverage, and net debt/EBITDA ratios. Real examples from META and MSFT, plus danger thresholds you need to know.

Debt/Equity Ratio: How Much Debt Is Too Much?

The debt to equity ratio explained: why context, interest coverage, and sector norms matter far more than the raw number when assessing debt risk.

The Formula

Total Debt / Shareholders' Equity

Why It Matters

Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.