HSBC Holdings (HSBC Holdings) Debt-to-Equity

: 1.27 (As of Dec. 2023)

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HSBC Holdings's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $0 Mil. HSBC Holdings's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $235,159 Mil. HSBC Holdings's Total Stockholders Equity for the quarter that ended in Dec. 2023 was $185,329 Mil. HSBC Holdings's debt to equity for the quarter that ended in Dec. 2023 was 1.27.

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

HSBC' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.52 Med: 1.06 Max: 1.48
Current: 1.27

During the past 13 years, the highest Debt-to-Equity Ratio of HSBC Holdings was 1.48. The lowest was 0.52. And the median was 1.06.

HSBC's Debt-to-Equity is ranked worse than
71.53% of 1398 companies
in the Banks industry
Industry Median: 0.7 vs HSBC: 1.27

HSBC Holdings Debt-to-Equity Historical Data

The historical data trend for HSBC Holdings'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.

HSBC Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-Equity

1.48

1.28

0.52

1.15

1.27

HSBC Holdings Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Debt-to-Equity																1.15	0.45	0.59	0.49	1.27

Competitive Comparison

For the Banks - Diversified subindustry, HSBC Holdings'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.

HSBC Holdings Debt-to-Equity Distribution

For the Banks industry and Financial Services sector, HSBC Holdings's Debt-to-Equity distribution charts can be found below:

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

HSBC Holdings Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

HSBC Holdings'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
	=	(0	+	235159)	/	185329
	=	1.27

HSBC Holdings's Debt to Equity Ratio for the quarter 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
	=	(0	+	235159)	/	185329
	=	1.27

HSBC Holdings (NYSE:HSBC) 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.

HSBC Holdings Debt-to-Equity Related Terms

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HSBC Holdings (HSBC Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » HSBC Holdings PLC (NYSE:HSBC) » Definitions » Debt-to-Equity

Comparable Companies

Traded in Other Exchanges

HBCYF:USA 00005:Hong Kong HSBAl:UK HSBA:UK HBC1:Germany HBC1:Germany HBC1:Germany HBC2:Germany HBC1:Germany H1SB34:Brazil HSBC:Argentina

Address

8 Canada Square, London, GBR, E14 5HQ

Website

https://www.hsbc.com

Established in 1865 in Hong Kong, London-based HSBC is one of the largest banks in the world, with assets of USD 3 trillion and 40 million customers worldwide. It operates across 64 countries with around 220,000 full-time staff. Key regions include Asia, Europe, the Middle East and North Africa, and North America. The United Kingdom and Hong Kong are the two largest markets for the bank. The bank offers retail, commercial and institutional banking, global banking and markets, wealth management, and private banking.