ZSNEUTRAL

ZS Debt-to-Equity Ratio Analysis

0.72x

Higher than 70% of Technology sector peers

Updated 35h ago·SEC filings & market data

Key Takeaway

Debt-to-equity (D/E) ratio measures how much debt a company uses to finance its assets relative to shareholder equity; ZS's 0.72x means it has $0.72 of debt for every $1 of equity.

Sector Performance

70th percentile

0.72x

Sector Median

0.20x

Sector Avg

0.28x

Prior Period

0.79x(Jun 2026)

↑ Improving

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Deep Analysis

Debt-to-equity (D/E) ratio measures how much debt a company uses to finance its assets relative to shareholder equity; ZS's 0.72x means it has $0.72 of debt for every $1 of equity.

This is notably higher than the sector median of 0.23x, placing ZS at the 70th percentile among technology peers, so it carries more leverage than most comparable companies. The trend is not available: the year-over-year change is N/A, and the quarter-over-quarter change is also N/A, with only the current value of 0.72x reported. As a result, the level alone indicates elevated debt risk relative to peers, but the absence of trend data prevents assessing whether leverage is increasing or improving. For investors, this higher leverage could amplify earnings swings, yet without a track record, the near-term risk is unclear rather than clearly rising. This metric supports the overall NEUTRAL verdict because leverage is above sector norms but not extreme enough on its own to dictate a bearish stance.

Frequently Asked Questions

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

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 ZS's Debt-to-Equity Ratio compare to its sector?

ZS's Debt-to-Equity Ratio of 0.72x compares to a Technology sector median of 0.20x, placing it in the 70th percentile.

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

The closest Technology peers by Debt-to-Equity Ratio include: TSM (0.15x), PTC (0.41x), AVGO (0.74x), U (0.75x), AAPL (0.80x).

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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.