What does debt-to-equity mean?

How much debt the company carries for every dollar of shareholder equity.

How do you interpret debt-to-equity?

Lower is generally safer, but moderate leverage can boost returns. Read in the context of cash-flow stability — a utility tolerates more debt than a cyclical. Negative equity makes the ratio meaningless and it is suppressed there.

How does debt-to-equity compare across companies?

Comparable within an industry; capital structures differ sharply across sectors. Not meaningful for banks.

Invesco Mortgage Capital IVR Debt-to-equity

Discontinued — last reported Q2 '20

Debt-to-equity at other companies

Annaly Capital ManagementNLY

0×0.0×

AGNC Investment Corp.AGNC

0×0.0×

New York Mortgage TrustADAM

0.5×-0.1×

MFA FinancialMFA

0×0.0×

Ladder CapitalLADR

0×0.0×

Chimera Investment Corp.CIM

0.1×+0.1×

Other financials

Income statement

See full

Revenue$79.6M+7.9%

Net income-$19.9M-201%

EPS (diluted)-$0.28-208%

Balance sheet

See full

Cash & equivalents$190.9M+5.2%

Total equity$876.4M+15.4%

Total assets$6.3B+1.8%

Cash flow

See full

Operating cash flow$26.7M+37.9%

Valuation

See full

Market cap$785.6M+36.4%

P/E12.7×+1.3×

P/S2.6×+0.6×

Profitability

See full

Net margin20.5%+3.2pp

Returns & leverage

See full

Return on equity7.5%+1.0pp

Where this comes from

Calculated from Invesco Mortgage Capital’s reported figures.

total debt/total stockholders equity=1.3×

Based on the most recent quarter.

The official record: Invesco Mortgage Capital’s 10-Q, filed August 4, 2021, on SEC EDGAR. View the filing →

Questions, answered.

What does debt-to-equity mean?: How much debt the company carries for every dollar of shareholder equity.
How do you interpret debt-to-equity?: Lower is generally safer, but moderate leverage can boost returns. Read in the context of cash-flow stability — a utility tolerates more debt than a cyclical. Negative equity makes the ratio meaningless and it is suppressed there.
How does debt-to-equity compare across companies?: Comparable within an industry; capital structures differ sharply across sectors. Not meaningful for banks.