Embraer (Embraer) Debt-to-Equity

: 1.35 (As of Mar. 2023)

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Embraer's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2023 was $313 Mil. Embraer's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2023 was $3,096 Mil. Embraer's Total Stockholders Equity for the quarter that ended in Mar. 2023 was $2,520 Mil. Embraer's debt to equity for the quarter that ended in Mar. 2023 was 1.35.

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

ERJ' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.04 Med: 1.07 Max: 1.62
Current: 1.07

During the past 13 years, the highest Debt-to-Equity Ratio of Embraer was 1.62. The lowest was 0.04. And the median was 1.07.

ERJ's Debt-to-Equity is ranked worse than
78.43% of 255 companies
in the Aerospace & Defense industry
Industry Median: 0.44 vs ERJ: 1.07

Embraer Debt-to-Equity Historical Data

The historical data trend for Embraer'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.

Embraer Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-Equity

0.04

1.62

1.53

1.28

1.07

Embraer Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Dec23
Debt-to-Equity																1.20	1.30	1.28	1.35	1.07

Competitive Comparison

For the Aerospace & Defense subindustry, Embraer'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.

Embraer Debt-to-Equity Distribution

For the Aerospace & Defense industry and Industrials sector, Embraer's Debt-to-Equity distribution charts can be found below:

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

Embraer Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

Embraer's Debt to Equity Ratio for the fiscal year that ended in Dec. 2023 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
	=	(140.9	+	2841.5)	/	2786.5
	=	1.07

Embraer's Debt to Equity Ratio for the quarter that ended in Mar. 2023 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
	=	(313.2	+	3096.2)	/	2519.5
	=	1.35

Embraer (NYSE:ERJ) 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.

Embraer Debt-to-Equity Related Terms

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Embraer (Embraer) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Embraer SA (NYSE:ERJ) » Definitions » Debt-to-Equity

Comparable Companies

Traded in Other Exchanges

ERJ:Mexico EMY:Germany EMY:Germany EMBR3:Brazil ERJ:Argentina

Address

Avenida Dra. Ruth Cardoso, 8501, 30th Floor, Pinheiros, SP, BRA, 05425-070

Website

https://ri.embraer.com.br

Embraer SA based in Sao Paulo, Brazil, Embraer manufactures regional aircraft, business jets, and defense and security products. The company also offers a range of services to support its installed base of hardware. Its defense and security business is currently focused on developing the KC-390 military transport aircraft. The company also produces aircraft systems and structural components. It operates through the following segments: Commercial Aviation; Defense and Security, Executive Aviation, Service and Support, and Other Segments. The company generates maximum revenue from Commercial Aviation segment.