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Australian Rare EarthsASX:AR3 Debt-to-Equity is 0.02 as of Dec. 2025, which is at its 10-year median of 0.02. The stock has 2 warning signs investors should review. Among 1,220 Metals & Mining companies, Australian Rare Earths ranks better than 83.61% on this metric.
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 Australian Rare Earths's Debt-to-Equity or its related term are showing as below:
ASX:AR3'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0 Med: 0.02 Max: 0.03
Current: 0.02
During the past 4 years, the highest Debt-to-Equity Ratio of Australian Rare Earths was 0.03. The lowest was 0.00. And the median was 0.02.
ASX:AR3's Debt-to-Equity is ranked better than 83.61% of 1220
companies
in the Metals & Mining industry
Industry Median: 0.15
vs ASX:AR3: 0.02
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.
Australian Rare Earths Debt-to-Equity Related Terms
Australian Rare Earths Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for Australian Rare Earths'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.
Australian Rare Earths Debt-to-Equity Competitor Comparison
For the Other Industrial Metals & Mining subindustry, Australian Rare Earths'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.
Australian Rare Earths Debt-to-Equity vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Australian Rare Earths's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Australian Rare Earths's Debt-to-Equity falls into.
* 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.
Australian Rare Earths (ASX:AR3) has a Debt-to-Equity of 0.02 as of Dec. 2025. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Australian Rare Earths and its competitors. This is near median its historical median of 0.02. According to the industry distribution chart, Australian Rare Earths ranks #200 out of 1220 companies in the Metals & Mining industry, placing it in the top 16.4%.
Is Australian Rare Earths' Debt-to-Equity too high?
Australian Rare Earths' current Debt-to-Equity of 0.02 is near median its 10-year median of 0.02. The Metals & Mining industry median Debt-to-Equity is 0.15. Australian Rare Earths' value of 0.02 is 86.7% below this industry median. Based on the distribution chart, Australian Rare Earths ranks #200 out of 1220 companies in the Metals & Mining industry, which is in the top quartile — a strong position relative to peers.
How does Australian Rare Earths' Debt-to-Equity compare to competitors?
According to the Metals & Mining industry distribution chart, Australian Rare Earths ranks #200 out of 1220 companies for Debt-to-Equity. This places Australian Rare Earths in the top 16% of its industry — outperforming the majority of peers. The industry median Debt-to-Equity is 0.15. Australian Rare Earths' value of 0.02 is 86.7% below this benchmark. While the company's 10-year median is 0.02 vs. the industry median of 0.15, Australian Rare Earths has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-Equity for a Metals & Mining company?
The median Debt-to-Equity among Metals & Mining companies is 0.15, based on 1,220 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Australian Rare Earths's current Debt-to-Equity of 0.02 is 86.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Australian Rare Earths and its competitors. For the Metals & Mining industry, the median Debt-to-Equity is 0.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Australian Rare Earths's current Debt-to-Equity is 0.02, which is near median its own 10-year median of 0.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Australian Rare Earths stock overvalued right now?
Australian Rare Earths (ASX:AR3) has a current Debt-to-Equity of 0.02. The current Debt-to-Equity is 0.02, which is near median its 10-year median of 0.02 and 86.7% below the Metals & Mining industry median of 0.15. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Australian Rare Earths (ASX:AR3), the current Debt-to-Equity is 0.02 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Australian Rare Earths Ltd is engaged in rare earth exploration and development. Its Koppamurra Project is a frontier ionic clay, rare earth opportunity in South Australia and Victoria.
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