JPMorgan Chase Debt to Equity Ratio Analysis (2024)

FAQs

JPMorgan Chase Debt to Equity Ratio Analysis? ›

Min: 1.11 Med: 1.31 Max: 1.62

JPMorgan Chase's operated at median debt / equity of 243.4% from fiscal years ending December 2019 to 2023. Looking back at the last 5 years, JPMorgan Chase's debt / equity peaked in March 2024 at 274.1%. JPMorgan Chase's debt / equity hit its 5-year low in December 2022 of 234.6%.

A good debt to equity ratio is around 1 to 1.5. However, the ideal debt to equity ratio will vary depending on the industry because some industries use more debt financing than others. Capital-intensive industries like the financial and manufacturing industries often have higher ratios that can be greater than 2.

JPMorgan Chase & Co., whose loan-to-deposit ratio was 50.6%, anticipates recording modest loan growth and lower deposit balances for 2023, CFO Jeremy Barnum said on the company's 2022 fourth-quarter earnings call.

Generally, a good debt-to-equity ratio is anything lower than 1.0. A ratio of 2.0 or higher is usually considered risky. If a debt-to-equity ratio is negative, it means that the company has more liabilities than assets—this company would be considered extremely risky.

What is a good debt-to-equity ratio? Although it varies from industry to industry, a debt-to-equity ratio of around 2 or 2.5 is generally considered good.

The maximum acceptable debt-to-equity ratio for more companies is between 1.5-2 or less. Large companies having a value higher than 2 of the debt-to-equity ratio is acceptable. 3. A debt-to-equity ratio indicates that a company may not be able to generate enough cash to satisfy its debt obligations.

Alphabet(Google) (GOOGL) Debt-to-Equity : 0.10 (As of Mar. 2024)

Generally speaking, a debt-to-equity ratio of 1.5 or less is considered good. A high debt-to-equity ratio indicates that a company funds its operations and growth primarily with debt, indicating a higher risk profile because they have more debt to repay.

Is a debt to equity ratio of 0.75 good? ›

Good debt-to-equity ratio for businesses

Many investors prefer a company's debt-to-equity ratio to stay below 2—that is, they believe it is important for a company's debts to be only double their equity at most. Some investors are more comfortable investing when a company's debt-to-equity ratio doesn't exceed 1 to 1.5.

The optimal debt-to-equity ratio will tend to vary widely by industry, but the general consensus is that it should not be above a level of 2.0. While some very large companies in fixed asset-heavy industries (such as mining or manufacturing) may have ratios higher than 2, these are the exception rather than the rule.

Do I need to worry about my debt ratio? If your debt ratio does not exceed 30%, the banks will find it excellent. Your ratio shows that if you manage your daily expenses well, you should be able to pay off your debts without worry or penalty. A debt ratio between 30% and 36% is also considered good.

JPMorgan Chase (JPMorgan Chase) Debt-to-Equity : 1.31 (As of Mar. 2024)

The trend for all ratings is Stable. The Intrinsic Assessment (IA) for the Bank is AA, while its Support Assessment remains SA1. The Company's Support Assessment is SA3 and its Long-Term Issuer Rating is positioned one notch below the Bank's IA.

Total debt on the balance sheet as of March 2024 : $442.14 B

According to JPMorgan Chase's latest financial reports the company's total debt is $442.14 B. A company's total debt is the sum of all current and non-current debts.

The Current Ratio as of May 2024 (TTM) for JPMorgan Chase & Co. (JPM-PM) is 2.02. According to JPMorgan Chase & Co.'s latest financial reports and current stock price. The company's current Current Ratio is 2.02. This represents a change of -8.44% compared to the average of 2.21 of the last 4 quarters.

JPMorgan Chase (JPMorgan Chase) Capital Adequacy Tier - Tier 1 Ratio % : 16.40% (As of Mar. 2024)

Morgan Stanley Debt to Equity Ratio: 2.888 for March 31, 2024.