Five Below Debt to Equity

Five Below posts a debt-to-equity ratio of 42.05. That is above the Consumer Discretionary sector average of 0.86. Comparing that reading with peers and prior periods is usually more useful than looking at the number in isolation.

For Consumer Discretionary stocks, a debt-to-equity ratio near 0.86 is typical. Five Below's 42.05 is higher that level. That is roughly 4814.5% above the sector mean. Whether that is a warning or an opportunity depends on growth outlook and other fundamentals shown elsewhere on Stockcircle.

Five Below's debt-to-equity ratio of 42.05 comes from dividing a price-based measure by a related financial statistic. Changes can come from the stock price moving, the underlying fundamental shifting, or both. Track both the level and the trend — a rising multiple on falling fundamentals is a different story than a rising multiple on rising earnings.

Context for FIVE's debt-to-equity ratio usually means three checks: (1) trend versus prior periods, (2) level versus peers (average 0.86), and (3) consistency with growth and profitability. This page covers the first two; Five Below's other metric pages and overview cover the third.

Judging Five Below against Consumer Discretionary peers is usually better than using a market-wide rule of thumb. Business models inside Consumer Discretionary are more comparable, which makes gaps in debt-to-equity ratio easier to interpret. Start with 42.05 here, then scan peer and history charts to see if the gap is persistent.