Zip Co (ASX:ZIP) LT-Debt-to-Total-Asset: 0.64 (As of Dec. 2025)

Zip Co ASX:ZIP +3.51% 62 LT-Debt-to-Total-Asset is 0.64 as of Dec. 2025. GuruFocus rates ASX:ZIP with a GF Score™ of 62/100 and a GF Value™ of A$2.07 (Significantly Overvalued). The stock has 7 warning signs investors should review.

LT Debt to Total Assets is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. It is calculated as a company's Long-Term Debt & Capital Lease Obligationdivide by its Total Assets. Zip Co's long-term debt to total assests ratio for the quarter that ended in Dec. 2025 was 0.64.

Zip Co's long-term debt to total assets ratio declined from Dec. 2024 (0.65) to Dec. 2025 (0.64). It may suggest that Zip Co is progressively becoming less dependent on debt to grow their business.

Zip Co (ASX:ZIP) LT-Debt-to-Total-Asset Explanation

LT Debt to Total Asset is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. A year-over-year decrease in this metric would suggest the company is progressively becoming less dependent on debt to grow their business.

Zip Co LT-Debt-to-Total-Asset Related Terms

Zip Co LT-Debt-to-Total-Asset Historical Data

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The historical data trend for Zip Co's LT-Debt-to-Total-Asset 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.

Zip Co LT-Debt-to-Total-Asset Chart

Zip Co Annual Data

Trend

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

Jun25

LT-Debt-to-Total-Asset

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0.63

0.82

0.87

0.76

0.69

Zip Co Semi-Annual Data
	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24	Jun25	Dec25
LT-Debt-to-Total-Asset	Get a 7-Day Free Trial															0.77	0.76	0.65	0.69	0.64

62GF Score

Zip Co Ltd ASX:ZIP

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Zip Co LT-Debt-to-Total-Asset Calculation

Zip Co's Long-Term Debt to Total Asset Ratio for the fiscal year that ended in Jun. 2025 is calculated as

LT Debt to Total Assets (A: Jun. 2025 )	=	Long-Term Debt & Capital Lease Obligation (A: Jun. 2025 )	/	Total Assets (A: Jun. 2025 )
	=	2423.997	/	3504.668
	=	0.69

Zip Co's Long-Term Debt to Total Asset Ratio for the quarter that ended in Dec. 2025 is calculated as

LT Debt to Total Assets (Q: Dec. 2025 )	=	Long-Term Debt & Capital Lease Obligation (Q: Dec. 2025 )	/	Total Assets (Q: Dec. 2025 )
	=	2539.485	/	3977.579
	=	0.64

Frequently Asked Questions Learn more about LT-Debt-to-Total-Asset →

What does a LT-Debt-to-Total-Asset of 0.64 mean?

Zip Co (ASX:ZIP) has a LT-Debt-to-Total-Asset of 0.64 as of Dec. 2025. Long-term Debt to Total Asset ratio is the ratio of total long-term debt to total assets. View historical data on Zip Co and its competitors.

Is Zip Co's LT-Debt-to-Total-Asset too high?

Zip Co's current LT-Debt-to-Total-Asset is 0.64. Overall, Zip Co has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.

How does Zip Co's LT-Debt-to-Total-Asset compare to V and MA?

Zip Co's LT-Debt-to-Total-Asset of 0.64 can be compared against companies in the Credit Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good LT-Debt-to-Total-Asset for a Credit Services company?

A good LT-Debt-to-Total-Asset depends on the Credit Services industry context. However, LT-Debt-to-Total-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high LT-Debt-to-Total-Asset mean?

A high LT-Debt-to-Total-Asset can signal that a stock is expensive relative to its fundamentals. Long-term Debt to Total Asset ratio is the ratio of total long-term debt to total assets. View historical data on Zip Co and its competitors. Zip Co's current LT-Debt-to-Total-Asset is 0.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Zip Co stock overvalued right now?

Based on GuruFocus' analysis, Zip Co (ASX:ZIP) is currently considered Significantly Overvalued. The stock's GF Value™ is A$2.07, compared to a current price of A$3.24 — trading 56.5% above its estimated fair value. The current LT-Debt-to-Total-Asset is 0.64. Zip Co's overall GF Score™ is 62/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is LT-Debt-to-Total-Asset calculated?

LT-Debt-to-Total-Asset is calculated from a company's financial statements. For Zip Co (ASX:ZIP), the current LT-Debt-to-Total-Asset is 0.64 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 Zip Co (ASX:ZIP) Overvalued in 2026?

Based on GuruFocus' analysis, Zip Co stock appears to be overvalued. The current stock price of A$3.24 is trading 56.5% above its estimated GF Value™ of A$2.07. GuruFocus considers Zip Co to be Significantly Overvalued.

Key valuation signals for ASX:ZIP:

LT-Debt-to-Total-Asset: 0.64
GF Value™: A$2.07 vs. price of A$3.24 (56.5% above fair value)
GF Score™: 62/100 with 7 warning signs

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

Zip Co Business Description

Industry Financial Services Credit Services

Comparable Companies ASX:LFG ASX:LFS ASX:CCP ASX:PPM ASX:SVR ASX:HUM ASX:FSA ASX:PLT ASX:PNC ASX:HMY V MA AXP COF BOM:500034 PYPL AFRM SYF NSE:SHRIRAMFIN SOFI

Other Exchanges ZIZTF:USA YRRA:Germany

Address 126 Phillip Street, Level 5, Sydney, NSW, AUS, 2000

Website https://www.zip.co

Zip is a credit provider operating two segments: Australia and New Zealand, and the US. Founded in Australia in 2013, it has over 6 million active customers and partners with over 85,000 merchants. In Australia, Zip positions itself as a credit card alternative, with several revolving credit products. Customers can carry the balance over time with a monthly fee and set their own repayment schedule. The US and New Zealand offering is a far more vanilla BNPL offering: Pay-in-4 in New Zealand and Pay-in-Z in the US, where customers pay back in fixed instalments. The US segment is built on the 2020 acquisition of QuadPay and has recently become Zip's largest and fastest-growing segment.

62GF Score

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

A$3.24

Price

A$2.07

GF Value

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