Debt-to-Equity Ratio

Zscaler’s current debt-to-equity ratio of 0.72x means the company has $0.72 of debt for every $1.00 of shareholders’ equity, a common measure of financial leverage.

This is well above the technology sector median of 0.27x, placing Zscaler in the 70th percentile among its peers, indicating higher reliance on debt than most. The metric has been decreasing over the last eight quarters and fell 8.9% quarter-over-quarter, though no year-over-year data is available for comparison. A declining ratio combined with a level still above sector norms suggests reduced financial risk relative to recent periods but leaves the company more leveraged than typical peers. The downward trend aligns with a neutral view, as it moderates risk but does not yet bring Zscaler to a conservative position. Therefore, this metric supports the overall NEUTRAL verdict by showing improvement that is offset by above-average leverage.

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