Understanding the Debt-to-Equity Ratio
Worked Example: These Figures Today
The companies used as examples above, with the live figures behind them. Illustrations of the metric — not a ranking, not a shortlist, and not a recommendation.
| Ticker | Company | Price | Change | Market Cap | P/E | MoonshotScore |
|---|---|---|---|---|---|---|
| JPM | JPMorgan Chase & Co. | $353.56 | -0.32% | $947.4B | 15.5 | 35 |
| GS | The Goldman Sachs Group, Inc. | $1029.09 | +0.91% | $303.6B | 15.5 | 34 |
| BA | The Boeing Company | $204.80 | -0.78% | $161.9B | 76.7 | 45 |
Debt-to-Equity Analysis: JPM, GS, and BA
“MoonshotScore rates a US-listed stock 0 to 100 — higher means stronger numbers. Most carry an older nine-factor score; the rest use five sector-relative pillars, re-ranked daily — common stocks and ADRs only. Funds, ETFs, warrants, units, SPACs, preferreds, and notes carry none. It is built for education and deeper due diligence, not financial advice.”
Questions worth resolving before acting on the screen
What is considered a good debt-to-equity ratio?
A 'good' debt-to-equity ratio depends on the industry. Capital-intensive industries like manufacturing may have higher acceptable ratios, while service-based industries may need lower ratios. Comparing a company's ratio to its peers is crucial.
Why is the debt-to-equity ratio important?
The debt-to-equity ratio helps investors assess a company's financial risk. A high ratio can signal that a company is overly leveraged and may face difficulty meeting its debt obligations, while a low ratio may indicate a conservative approach to growth.
What are the limitations of the debt-to-equity ratio?
The debt-to-equity ratio does not provide a complete picture of a company's financial health. It should be used in conjunction with other financial metrics and an understanding of the company's industry and overall economic conditions.