Deere & Company (DE)
Debt-to-equity ratio
| Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Nov 1, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | Nov 3, 2019 | Jul 28, 2019 | Apr 28, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | 32,447,000 | 32,838,000 | 32,888,000 | 32,280,000 | 33,346,000 | 32,772,000 | 32,734,000 | 34,037,000 | 34,324,000 | 30,475,000 | — | 29,242,000 | 28,255,000 |
| Total stockholders’ equity | US$ in thousands | 22,075,000 | 21,785,000 | 23,048,000 | 22,395,000 | 21,332,000 | 20,262,000 | 19,033,000 | 18,904,000 | 17,804,000 | 18,431,000 | 15,731,000 | 15,092,000 | 14,083,000 | 12,937,000 | 12,888,000 | 11,864,000 | 11,926,000 | 11,413,000 | 12,266,000 | 11,919,000 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1.72 | 1.84 | 1.78 | 2.05 | 2.21 | 2.33 | 2.53 | 2.64 | 2.89 | 2.56 | 0.00 | 2.38 | 2.37 |
January 28, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $22,075,000K
= 0.00
Deere & Co.'s debt-to-equity ratio has been fluctuating over the past eight quarters, ranging from 2.53 to 2.91. The ratio measures the company's financial leverage by comparing its total debt to shareholders' equity. A higher ratio indicates that the company relies more on debt financing, potentially increasing financial risk.
In this case, Deere & Co.'s debt-to-equity ratio has been consistently above 2, suggesting a high level of financial leverage and reliance on debt to fund operations and investments. It peaked in Q4 2023 at 2.91, indicating a relatively higher level of debt compared to equity.
Investors and creditors may view a high debt-to-equity ratio with caution as it implies a greater repayment obligation and financial vulnerability, especially during economic downturns or adverse market conditions. Monitoring the trend of this ratio over time can provide insights into the company's capital structure and financial risk profile.
Peer comparison
Jan 28, 2024