Debt to capital ratio by industry

94 U.S. industries, highest first · January 2026

Median industry21.9%half are above, half below

Highest78.2%Rubber & Tires

Lowest2.0%Software (Entertainment)

#	Industry	Debt ratio	Cost of capital	Companies
1	Rubber & Tires	78.2%	4.5%	3
2	Financial Services (Non-bank & Insurance)	73.1%	5.0%	176
3	Chemical (Diversified)	63.8%	5.2%	4
4	Bank (Money Center)	62.2%	5.0%	15
5	Cable TV	59.5%	5.2%	9
6	Brokerage & Investment Banking	57.6%	6.1%	32
7	Green & Renewable Energy	53.1%	6.0%	15
8	Real Estate (Development)	50.4%	5.8%	14
9	Chemical (Basic)	49.8%	6.2%	29
10	Telecom Services	49.0%	5.4%	39
11	Air Transport	47.7%	6.7%	23
12	Broadcasting	46.2%	5.1%	24
13	REITs	45.8%	5.3%	190
14	Utility (General)	44.9%	4.4%	14
15	Power	42.6%	5.0%	46
16	Insurance (Life)	40.4%	5.6%	20
17	Recreation	38.6%	6.8%	49
18	Utility (Water)	38.4%	4.9%	14
19	Hospitals/Healthcare Facilities	37.5%	6.2%	31
20	Oil/Gas Distribution	36.9%	5.8%	23
21	Retail (REITs)	36.1%	5.6%	26
22	Packaging & Container	35.5%	6.8%	19
23	Real Estate (General/Diversified)	34.9%	6.3%	12
24	Banks (Regional)	34.3%	5.0%	568
25	Retail (Grocery and Food)	34.2%	7.2%	15
26	Telecom (Wireless)	34.2%	5.5%	12
27	Farming/Agriculture	34.1%	7.3%	35
28	Office Equipment & Services	32.5%	7.9%	14
29	Food Wholesalers	32.0%	6.5%	13
30	Retail (Automotive)	31.2%	6.8%	34
31	Food Processing	30.4%	5.8%	78
32	Paper/Forest Products	30.4%	6.9%	6
33	Reinsurance	30.3%	5.6%	1
34	Beverage (Alcoholic)	30.2%	6.5%	14
35	Furn/Home Furnishings	29.7%	6.5%	27
36	Auto Parts	29.3%	8.2%	35
37	Advertising	28.7%	7.8%	52
38	Hotel/Gaming	28.4%	7.4%	63
39	Oil/Gas (Production and Exploration)	27.3%	6.3%	142
40	Oilfield Services/Equipment	27.2%	7.0%	97
41	Transportation	26.7%	6.7%	19
42	Healthcare Support Services	26.2%	6.8%	104
43	Information Services	24.9%	7.0%	15
44	Investments & Asset Management	24.6%	6.1%	283
45	Apparel	23.8%	7.1%	35
46	Chemical (Specialty)	23.0%	7.2%	59
47	Retail (Distributors)	22.0%	7.2%	62
48	Transportation (Railroads)	21.8%	7.3%	4
49	Restaurant/Dining	21.4%	7.2%	64
50	Building Materials	20.6%	7.8%	41
51	Insurance (General)	20.4%	6.3%	21
52	Trucking	20.2%	7.5%	26
53	Computer Services	20.1%	7.8%	64
54	Real Estate (Operations & Services)	19.8%	7.4%	54
55	Education	19.6%	6.8%	32
56	Publishing & Newspapers	19.3%	5.9%	19
57	Steel	19.0%	7.8%	19
58	Retail (Building Supply)	18.9%	9.5%	14
59	Tobacco	18.7%	6.9%	10
60	Shipbuilding & Marine	18.4%	6.7%	8
61	Environmental & Waste Services	17.7%	7.4%	53
62	Homebuilding	17.6%	7.3%	30
63	Beverage (Soft)	17.1%	6.3%	27
64	Retail (Special Lines)	16.5%	8.0%	94
65	Business & Consumer Services	16.5%	7.2%	155
66	Auto & Truck	16.4%	9.4%	33
67	Household Products	15.4%	7.0%	110
68	Construction Supplies	15.0%	8.3%	40
69	Entertainment	13.7%	7.1%	92
70	Healthcare Information and Technology	13.6%	8.2%	115
71	Aerospace/Defense	13.5%	7.6%	79
72	Diversified	13.5%	7.3%	20
73	Insurance (Prop/Cas.)	12.9%	5.8%	57
74	Machinery	12.8%	7.7%	105
75	Drugs (Pharmaceutical)	12.7%	7.8%	228
76	Engineering/Construction	12.3%	8.7%	48
77	Oil/Gas (Integrated)	12.2%	5.1%	4
78	Drugs (Biotechnology)	11.5%	8.5%	496
79	Healthcare Products	11.3%	7.5%	204
80	Software (Internet)	10.9%	10.7%	29
81	Electrical Equipment	10.7%	9.0%	112
82	Shoe	10.7%	8.0%	11
83	Electronics (General)	9.9%	7.8%	114
84	Metals & Mining	9.9%	8.2%	73
85	Telecom Equipment	8.4%	7.7%	57
86	Retail (General)	7.4%	7.3%	23
87	Precious Metals	6.8%	7.5%	56
88	Coal & Related Energy	6.7%	8.4%	16
89	Electronics (Consumer & Office)	5.5%	7.6%	8
90	Software (System & Application)	5.3%	9.3%	309
91	Semiconductor Equipment	4.6%	9.9%	31
92	Computers/Peripherals	4.4%	9.7%	36
93	Semiconductor	2.5%	10.5%	66
94	Software (Entertainment)	2.0%	8.4%	77

Source: Aswath Damodaran, NYU Stern, January 2026. Aggregates over U.S. public companies.

Frequently asked questions

What is a good debt ratio?

It depends on the industry: the median across these 94 industries is 21.9%, from Software (Entertainment) (2.0%) to Rubber & Tires (78.2%). Compare a business with its own industry, not with the overall average.

How is the debt ratio calculated?

Debt as a share of total capital, debt plus the market value of equity: how heavily the industry borrows. Each figure is an aggregate: the total across every company in the industry, so larger companies weigh more than in a simple average.

Where does the data come from?

Aswath Damodaran’s datasets at NYU Stern, January 2026, covering thousands of U.S. public companies in 94 industries. It is refreshed each January.