Debt-to-Equity Rankings: Most & Least Leveraged S&P 500 C...

Q: What is a good debt-to-equity ratio?

A good D/E ratio varies by industry. Capital-intensive sectors like utilities typically run 1.0–2.0+, while tech companies stay lower. Generally, below 1.0 is considered conservative — the company has more equity than debt.

Q: Which S&P 500 companies have the most debt?

Telecom, utilities, and financial services companies tend to hold the largest absolute debt. But absolute debt must be compared to equity and cash flow. Some companies like Clorox and Masco actually have negative equity.

Q: What does negative equity mean?

Negative equity means a company's liabilities exceed its assets. This often results from aggressive share buybacks or accumulated losses. The traditional D/E ratio becomes meaningless — these companies are effectively infinitely leveraged.

Q: How does debt-to-equity affect stock price?

High leverage amplifies both gains and losses. When business is good, debt boosts return on equity. When it slows, interest payments can wipe out profits — leading to higher volatility and downside risk.

Some S&P 500 companies have debt ratios above 20× equity — and a few have negative equity entirely. Use the calculator below, explore interactive charts, or search the full rankings to see where any company stands.

—

Average D/E Ratio

—

Most Leveraged

—

Least Leveraged

—

Negative Equity

Companies with liabilities > assets

📊 Debt-to-Equity Calculator

Enter a company's total debt and total equity to instantly calculate its D/E ratio and see how it compares to S&P 500 companies.

Total Debt ($)

Total Equity ($)

—

Enter values to calculate

Key Insights

Sector Leverage Analysis

Average D/E by Sector

D/E Distribution

S&P 500 Debt-to-Equity Rankings

<0.5 (Low)

0.5–1.0

1.0–2.0

>2.0 (High)

Negative Equity

# ▼	Company ▼	Sector ▼	D/E Ratio ▼	Total Debt ▼	Total Equity ▼

Top 150 Most Leveraged S&P 500 Companies

Rank	Company	D/E Ratio	Total Debt	Total Equity
1	The Clorox Company (CLX)	N/A (Neg Equity)	$3.2B	-$125.0M
2	Masco Corporation (MAS)	N/A (Neg Equity)	$3.2B	-$184.5M
3	Colgate-Palmolive (CL)	23.44	$8.6B	$53.7M
4	GoDaddy Inc. (GDDY)	17.96	$3.9B	$212.8M
5	Verisk Analytics (VRSK)	15.82	$4.9B	$308.0M
6	DaVita Inc. (DVA)	N/A (Neg Equity)	$12.9B	-$634.9M
7	Seagate Technology (STX)	10.47	$4.8B	$471.3M
8	Gartner, Inc. (IT)	10.47	$3.3B	$318.1M
9	The Boeing Company (BA)	10.33	$56.4B	$5.5B
10	NRG Energy (NRG)	9.89	$16.6B	$1.2B

Understanding Debt-to-Equity Ratios

The debt-to-equity ratio is one of the most fundamental measures of a company's financial leverage. It tells you how much debt a company uses to finance its operations relative to shareholder equity. A D/E of 2.0 means the company has $2 of debt for every $1 of equity.

But context matters enormously. A utility with a D/E of 1.8 is perfectly normal — utilities have stable, regulated cash flows that can reliably service debt. A tech startup with the same ratio would be a red flag. This is why the sector comparison chart above is critical: you need to compare apples to apples.

Negative equity is the extreme case. Companies like Clorox and Masco have bought back so many shares that total equity has gone negative. The traditional D/E formula breaks down here — these companies are technically infinitely leveraged, though they may still be operationally sound with strong cash flows.

When evaluating leverage, consider the D/E ratio alongside interest coverage, debt maturity schedule, and the interest rate environment. A high D/E ratio in a low-rate environment is very different from the same ratio when refinancing at 6%+.

Frequently Asked Questions

What is a good debt-to-equity ratio?

A "good" ratio varies by industry. Capital-intensive sectors like utilities typically run 1.0–2.0+, while tech companies stay lower. Generally, below 1.0 is considered conservative — the company has more equity than debt. Use the calculator above to see how any D/E ratio compares to S&P 500 averages.

Which S&P 500 companies have the most debt?

By absolute debt, financial services companies like JPMorgan ($0+ in direct debt but massive balance sheet), Citigroup ($777B), and Goldman Sachs ($748B) lead. But absolute debt must be compared to equity — Colgate-Palmolive has "only" $8.6B in debt but just $53.7M in equity, giving it a D/E of 23.44×.

Is high debt-to-equity always bad?

No. Debt is often cheaper than equity financing due to tax-deductible interest. Companies with predictable cash flows (utilities, consumer staples) can safely handle higher leverage. However, in rising-rate environments, companies with high leverage and upcoming refinancing needs face significant risk.

What does negative equity mean for investors?

Negative equity means accumulated buybacks or losses have pushed total equity below zero. This doesn't automatically mean the company is failing — Clorox has strong brands and cash flow. But it does mean the company is entirely debt-financed and has zero equity cushion if things go wrong.

How does debt-to-equity affect stock price?

High leverage amplifies both gains and losses for shareholders. When business is good, debt boosts return on equity. When it slows, high interest payments can wipe out profits — leading to higher stock price volatility and greater downside risk. This is why highly leveraged stocks tend to be more volatile.

Methodology & Data

Data was collected for S&P 500 components as of March 2026. The analysis focuses on the 150 most leveraged companies.

Debt-to-Equity (D/E): Total Debt ÷ Total Shareholder Equity.
Negative Equity: Companies where buybacks or losses pushed equity below zero. D/E is not meaningful for these firms.
Ranking: Negative equity companies rank first (highest leverage), followed by descending D/E ratio.

Disclaimer: This site provides data and analysis for informational purposes only. Nothing here constitutes investment advice. Do your own research.

Cite This Page

Westmount Fundamentals. "Debt-to-Equity Rankings: Most & Least Leveraged S&P 500 Companies." westmountfundamentals.com/debt-to-equity, 2026.

How to Pay Off Debt Fast: Proven Strategies and The Math Behind Them Earnings Yield vs Bond Yield: Is the Stock Market Fairly Valued? Home Equity Calculator Debt-to-Income Ratio Calculator