Valuation check: PFGC's debt-to-equity ratio is 2.08, above the sector sector average of 0.2.
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Debt-to-Equity ratio measures a company's financial leverage by comparing its total debt to shareholder equity. A lower D/E ratio generally indicates a more financially stable company with less risk.
Performance Food Group Company posts a debt-to-equity ratio of 2.08. That is above the sector sector average of 0.2. Comparing that reading with peers and prior periods is usually more useful than looking at the number in isolation.
For its sector stocks, a debt-to-equity ratio near 0.2 is typical. Performance Food Group Company's 2.08 is higher that level. That is roughly 930.8% above the sector mean. Whether that is a warning or an opportunity depends on growth outlook and other fundamentals shown elsewhere on Stockcircle.
Performance Food Group Company's debt-to-equity ratio of 2.08 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 PFGC's debt-to-equity ratio usually means three checks: (1) trend versus prior periods, (2) level versus peers (average 0.2), and (3) consistency with growth and profitability. This page covers the first two; Performance Food Group Company's other metric pages and overview cover the third.