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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 Zoom Communications's Debt-to-Equity or its related term are showing as below:
XSWX:ZM'
s Debt-to-Equity Range Over the Past 10 Years
Min: -2 Med: 0.02 Max: 0.09
Current: 0.01
During the past 10 years, the highest Debt-to-Equity Ratio of Zoom Communications was 0.09. The lowest was -2.00. And the median was 0.02.
XSWX:ZM's Debt-to-Equity is ranked better than 99.96% of 2245
companies
in the Software industry
Industry Median: 0.19
vs XSWX:ZM: 0.01
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.
Zoom Communications Debt-to-Equity Related Terms
Zoom Communications Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for Zoom Communications'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.
XSWX:ZM vs FICO, MSTR, WDAY: Debt-to-Equity Comparison
For the Software - Application subindustry, Zoom Communications'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.
Zoom Communications Debt-to-Equity vs Software Industry
For the Software industry and Technology sector, Zoom Communications's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Zoom Communications'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.
Zoom Communications (XSWX:ZM) has a Debt-to-Equity of 0.01 as of Apr. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Zoom Communications and its competitors. This is 50% below median its historical median of 0.02. According to the industry distribution chart, Zoom Communications ranks #1 out of 2245 companies in the Software industry, placing it in the top 0%.
Is Zoom Communications' Debt-to-Equity too high?
Zoom Communications' current Debt-to-Equity of 0.01 is 50% below median its 10-year median of 0.02. The Software industry median Debt-to-Equity is 0.19. Zoom Communications' value of 0.01 is 94.7% below this industry median. Based on the distribution chart, Zoom Communications ranks #1 out of 2245 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Zoom Communications has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does Zoom Communications' Debt-to-Equity compare to FICO and MSTR?
According to the Software industry distribution chart, Zoom Communications ranks #1 out of 2245 companies for Debt-to-Equity. This places Zoom Communications in the top 0% of its industry — outperforming the majority of peers. The industry median Debt-to-Equity is 0.19. Zoom Communications' value of 0.01 is 94.7% below this benchmark. While the company's 10-year median is 0.02 vs. the industry median of 0.19, Zoom Communications 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 Software company?
The median Debt-to-Equity among Software companies is 0.19, based on 2,245 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. Zoom Communications's current Debt-to-Equity of 0.01 is 94.7% 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 Zoom Communications and its competitors. For the Software industry, the median Debt-to-Equity is 0.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zoom Communications's current Debt-to-Equity is 0.01, which is 50% below 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 Zoom Communications stock overvalued right now?
Zoom Communications (XSWX:ZM) has a current Debt-to-Equity of 0.01. The stock's GF Value™ is CHF65.20, compared to a current price of CHF70.86 — trading 8.7% above its estimated fair value. The current Debt-to-Equity is 0.01, which is 50% below median its 10-year median of 0.02 and 94.7% below the Software industry median of 0.19. Zoom Communications' overall GF Score™ is 85/100 with 3 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 Zoom Communications (XSWX:ZM), the current Debt-to-Equity is 0.01 as of Apr. 2026. 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 Zoom Communications (XSWX:ZM) Overvalued in 2026?
Based on GuruFocus' analysis, Zoom Communications stock appears to be overvalued.
The current stock price of CHF70.86 is trading 8.7% above its estimated GF Value™ of CHF65.20.
Key valuation signals for XSWX:ZM:
Debt-to-Equity: 0.01 (50% below median its 10-year median of 0.02)
GF Value™: CHF65.20 vs. price of CHF70.86 (8.7% above fair value)
Industry Position: 94.7% below the Software median (#1 of 2245)
No single metric tells the full story. See the XSWX:ZM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zoom Communications provides a video-first communications platform that connects people through frictionless video, voice, chat, and content sharing. The company's cloud-native platform enables video experiences and connects users across various devices and locations in a single meeting. Zoom has launched a variety of communications-related solutions, including Zoom Phone and Zoom Contact Center. The firm was founded in 2011 and serves companies of all sizes from all industries around the world.
85GF Score
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