A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Shopify's Debt-to-Equity or its related term are showing as below:
SHOP'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0.01 Med: 0.05 Max: 0.15
Current: 0.14
During the past 10 years, the highest Debt-to-Equity Ratio of Shopify was 0.15. The lowest was 0.01. And the median was 0.05.
SHOP's Debt-to-Equity is ranked better than 57.79% of 2047
companies
in the Software industry
Industry Median: 0.20
vs SHOP: 0.14
Shopify Debt-to-Equity Historical Data
The historical data trend for Shopify's Debt-to-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Premium members only.
Shopify Annual Data
Trend
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Debt-to-Equity
0.02
0.01
0.05
0.14
0.11
Shopify Quarterly Data
Sep17
Dec17
Mar18
Jun18
Sep18
Dec18
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Debt-to-Equity
0.11
0.10
0.11
0.12
0.14
Competitive Comparison
For the Software - Application subindustry, Shopify's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Shopify Debt-to-Equity Distribution
For the Software industry and Technology sector, Shopify's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Shopify's Debt-to-Equity falls into.
Shopify Debt-to-Equity Calculation
Debt to Equity measures the financial leverage a company has.
Shopify's Debt to Equity Ratio for the fiscal year that ended in Dec. 2021 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Shopify Debt-to-Equity Related Terms
Thank you for viewing the detailed overview of Shopify's Debt-to-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
Shopify offers an e-commerce platform primarily to small and midsize businesses. The firm has two segments: subscription solutions (43% of fiscal 2018 revenue) and merchant solutions (57% of fiscal 2018 revenue). The subscription solutions segment allows Shopify merchants to conduct e-commerce on a variety of platforms, including the company's website, physical stores, pop-up stores, kiosks, social networks (Facebook), and Amazon. Merchant solutions are add-on products for the platform that facilitate e-commerce and include Shopify Payments, Shopify Shipping, and Shopify Capital.
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