RTO (Rentokil Initial) Debt-to-Equity: 1.12 (As of Dec. 2025) — 21% Below Median

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Director of Data and Quant Analytics at GuruFocus
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Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

RTO Rentokil Initial PLC RTO
84 GF Score
Price $30.41
GF Value $29.88
Valuation Fairly Valued
! 6 Warning Signs
View Full Analysis

What is Rentokil Initial Debt-to-Equity?

Rentokil Initial RTO +2.12% 84 Debt-to-Equity is 1.12 as of Dec. 2025, which is 21% below its 10-year median of 1.42. GuruFocus rates RTO with a GF Score™ of 84/100 and a GF Value™ of $29.88 (Fairly Valued). The stock has 6 warning signs investors should review. Among 955 Business Services companies, Rentokil Initial ranks worse than 79.06% on this metric.

Rentokil Initial's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2025 was $1,582 Mil. Rentokil Initial's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2025 was $4,548 Mil. Rentokil Initial's Total Stockholders Equity for the quarter that ended in Dec. 2025 was $5,496 Mil. Rentokil Initial's debt to equity for the quarter that ended in Dec. 2025 was 1.12.

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

RTO' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.97   Med: 1.42   Max: 3.71
Current: 1.12

During the past 13 years, the highest Debt-to-Equity Ratio of Rentokil Initial was 3.71. The lowest was 0.97. And the median was 1.42.

RTO's Debt-to-Equity is ranked worse than
79.06% of 955 companies
in the Business Services industry
Industry Median: 0.33 vs RTO: 1.12

Rentokil Initial  (NYSE:RTO) 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.


Rentokil Initial Debt-to-Equity Related Terms


Rentokil Initial Debt-to-Equity Historical Data

* Premium members only.

The historical data trend for Rentokil Initial'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.

Rentokil Initial Debt-to-Equity Chart

Rentokil Initial Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Debt-to-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.53 1.31 1.16 0.97 1.12

Rentokil Initial Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Debt-to-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.16 1.14 0.97 1.15 1.12

RTO vs CTAS, CPRT, ULS: Debt-to-Equity Comparison

For the Specialty Business Services subindustry, Rentokil Initial'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.


Rentokil Initial Debt-to-Equity vs Business Services Industry

For the Business Services industry and Industrials sector, Rentokil Initial's Debt-to-Equity distribution charts can be found below:

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


RTO
84GF Score
Rentokil Initial PLC RTO
Debt-to-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Rentokil Initial Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

Rentokil Initial's Debt to Equity Ratio for the fiscal year that ended in Dec. 2025 is calculated as

Rentokil Initial's Debt to Equity Ratio for the quarter that ended in Dec. 2025 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.

Frequently Asked Questions Learn more about Debt-to-Equity →
What does a Debt-to-Equity of 1.12 mean?
Rentokil Initial (RTO) has a Debt-to-Equity of 1.12 as of Dec. 2025. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Rentokil Initial and its competitors. This is 21% below median its historical median of 1.42. Over the past decade, Rentokil Initial's Debt-to-Equity has ranged from 0.97 to 3.71. According to the industry distribution chart, Rentokil Initial ranks #755 out of 955 companies in the Business Services industry, placing it in the top 79.1%.
Is Rentokil Initial's Debt-to-Equity too high?
Rentokil Initial's current Debt-to-Equity of 1.12 is 21% below median its 10-year median of 1.42. Over the past 10 years, this metric has ranged from a low of 0.97 to a high of 3.71. The Business Services industry median Debt-to-Equity is 0.33. Rentokil Initial's value of 1.12 is 239.4% above this industry median. Based on the distribution chart, Rentokil Initial ranks #755 out of 955 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, Rentokil Initial has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Rentokil Initial's Debt-to-Equity compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Rentokil Initial ranks #755 out of 955 companies for Debt-to-Equity. This places Rentokil Initial in the lower half of its industry. The industry median Debt-to-Equity is 0.33. Rentokil Initial's value of 1.12 is 239.4% above this benchmark. Historically, Rentokil Initial's own Debt-to-Equity has ranged from 0.97 to 3.71 over the past decade. While the company's 10-year median is 1.42 vs. the industry median of 0.33, Rentokil Initial has consistently been above 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 Business Services company?
The median Debt-to-Equity among Business Services companies is 0.33, based on 955 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. Rentokil Initial's current Debt-to-Equity of 1.12 is 239.4% above 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 Rentokil Initial and its competitors. For the Business Services industry, the median Debt-to-Equity is 0.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rentokil Initial's current Debt-to-Equity is 1.12, which is 21% below median its own 10-year median of 1.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rentokil Initial stock overvalued right now?
Based on GuruFocus' analysis, Rentokil Initial (RTO) is currently considered Fairly Valued. The stock's GF Value™ is $29.88, compared to a current price of $30.41 — trading 1.8% above its estimated fair value. The current Debt-to-Equity is 1.12, which is 21% below median its 10-year median of 1.42 and 239.4% above the Business Services industry median of 0.33. Rentokil Initial's overall GF Score™ is 84/100 with 6 warning signs to review. 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 Rentokil Initial (RTO), the current Debt-to-Equity is 1.12 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.

Is Rentokil Initial (RTO) Overvalued in 2026?

Based on GuruFocus' analysis, Rentokil Initial stock appears to be overvalued. The current stock price of $30.41 is trading 1.8% above its estimated GF Value™ of $29.88. GuruFocus considers Rentokil Initial to be Fairly Valued.

Key valuation signals for RTO:

  • Debt-to-Equity: 1.12 (21% below median its 10-year median of 1.42)
  • GF Value™: $29.88 vs. price of $30.41 (1.8% above fair value)
  • GF Score™: 84/100 with 6 warning signs
  • Industry Position: 239.4% above the Business Services median (#755 of 955)

No single metric tells the full story. See the RTO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Rentokil Initial Business Description

Address Manor Royal, Compass House, Crawley, West Sussex, GBR, RH10 9PY
Rentokil Initial is the largest global provider of route-based pest control and commercial hygiene services, operating in over 90 countries, with its largest operations in the United States following the acquisition of Terminix. The group also offers a range of specialist route-based services, including office and commercial space plant care, property care, and workwear rentals. The group serves a diverse client base of global food producers, hotel chains, industrial goods companies, restaurants, and individual residential customers.
84GF Score

Get the complete analysis for RTO

Debt-to-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$30.41
Price
$29.88
GF Value