Afterpay (Afterpay) Debt-to-Equity : 1.01 (As of Jun. 2021)

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What is Afterpay Debt-to-Equity?

Afterpay's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2021 was $1.7 Mil. Afterpay's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2021 was $1,007.9 Mil. Afterpay's Total Stockholders Equity for the quarter that ended in Jun. 2021 was $996.2 Mil. Afterpay's debt to equity for the quarter that ended in Jun. 2021 was 1.01.

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 Afterpay's Debt-to-Equity or its related term are showing as below:

AFTPY' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.08 Med: 0.5 Max: 1.01
Current: 1.01

During the past 5 years, the highest Debt-to-Equity Ratio of Afterpay was 1.01. The lowest was 0.08. And the median was 0.50.

AFTPY's Debt-to-Equity is not ranked
in the Software industry.
Industry Median: 0.21 vs AFTPY: 1.01

Afterpay Debt-to-Equity Historical Data

The historical data trend for Afterpay'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.

Afterpay Debt-to-Equity Chart

Afterpay Annual Data

Trend

Jun17

Jun18

Jun19

Jun20

Jun21

Debt-to-Equity

0.29

0.88

0.08

0.50

1.01

Afterpay Semi-Annual Data
	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21
Debt-to-Equity	Get a 7-Day Free Trial				0.08	0.50	0.50	0.07	1.01

Competitive Comparison of Afterpay's Debt-to-Equity

For the Software - Infrastructure subindustry, Afterpay'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.

Afterpay's Debt-to-Equity Distribution in the Software Industry

For the Software industry and Technology sector, Afterpay's Debt-to-Equity distribution charts can be found below:

* The bar in red indicates where Afterpay's Debt-to-Equity falls into.

Afterpay Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

Afterpay's Debt to Equity Ratio for the fiscal year that ended in Jun. 2021 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(1.683	+	1007.937)	/	996.248
	=	1.01

Afterpay's Debt to Equity Ratio for the quarter that ended in Jun. 2021 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(1.683	+	1007.937)	/	996.248
	=	1.01

Afterpay (OTCPK:AFTPY) Debt-to-Equity Explanation

In the calculation of Debt to Equity, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by Total Stockholders Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

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.

Afterpay Debt-to-Equity Related Terms

Thank you for viewing the detailed overview of Afterpay's Debt-to-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.

Afterpay (Afterpay) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Afterpay Ltd (OTCPK:AFTPY) » Definitions » Debt-to-Equity

Comparable Companies

Traded in Other Exchanges

N/A

Address

406 Collins Street, Level 5, Melbourne, VIC, AUS, 3000

Website

https://www.afterpay.com

Afterpay started its buy now, pay later, or BNPL, financing product in calendar 2015, listed on the ASX in May 2016 and merged with Touchcorp (who designed and built Afterpay's platform software) in June 2017. Its BNPL platform allows consumers to make acquisitions at merchant partners by paying instalments every two weeks. If consumers pay on time, they transact on Afterpay for free. Afterpay primarily generates revenue from receiving a margin from the merchant. Afterpay pays the merchant the full purchase price immediately on the sale, less this margin. The margin compensates Afterpay for accepting all non-payment risk, including credit risk and fraud by the consumer, and for encouraging consumers to purchase greater dollar values and transact more frequently.