Bank of America Corporation PFD SER B 7% (BACRP) Debt-to-Equity Ratio
As of May 23, 2026
TL;DR — BACRP debt-to-equity is 1.21
Bank of America Corporation PFD SER B 7% (BACRP) currently carries a debt-to-equity ratio of 1.21 (elevated). Interest coverage is N/A and the current ratio is 0.42. Debt exceeds equity — earnings sensitivity to interest-rate moves and downturns is higher. Verify cash coverage and the current ratio before relying on the dividend.
Current leverage profile
Debt / Equity
1.21
Total debt / shareholder equity
Interest coverage
N/A
EBIT / interest expense
Current ratio
0.42
Short-term liquidity
D/E in isolation is a starting point, not a verdict. To get a credible read on solvency you also want to see interest coverage above 3x (so EBIT comfortably pays interest) and a current ratio above 1.2 (so short-term assets cover short-term obligations). When those two are healthy, even a higher D/E is usually manageable.
5-Year debt-to-equity trend
The direction of travel matters as much as the absolute level. A D/E that has been rising over the past five years tells you the management team is leaning more on debt — either to fund growth (good if returns on capital exceed cost of debt) or because cash flow can't keep up (bad).
Series illustrated from current D/E. Full 5-year quarterly history ships in the upcoming balance-sheet ingest.
Industry comparison
The Financial Services sector median D/E is roughly 1.8. BACRP's reading of 1.21 is currently ~33% below the sector median, which leaves BACRP with more financial flexibility than its peers — useful both in downturns and when M&A or buyback opportunities appear..
Compare BACRP against every Financial Services peer in the full sector list.
Interpreting BACRP's debt-to-equity
What "Elevated" means here: Debt exceeds equity — earnings sensitivity to interest-rate moves and downturns is higher. Verify cash coverage and the current ratio before relying on the dividend.
Sector context matters: a D/E of 1.5 in financials or utilities is normal. The same number in software or pharma is a yellow flag. Always anchor your read against the sector median above before forming a view.
Watch the direction: a slowly rising D/E is fine if return on invested capital (see the fundamentals page) is comfortably above the cost of debt. A rapidly rising D/E paired with deteriorating ROIC is the classic distressed-equity pattern.
Stress test: ask yourself what BACRP looks like if revenue drops 20% for two years. With its current interest coverage of N/A, can the company keep paying interest? The Altman Z-Score on the fundamentals page is a quick formal version of this question.
Related BACRP analyses
Frequently asked about BACRP debt-to-equity
What is BACRP's debt-to-equity ratio?↓
BACRP's current debt-to-equity ratio is 1.21 as of May 23, 2026. That puts it in the "Elevated" category. Debt exceeds equity — earnings sensitivity to interest-rate moves and downturns is higher. Verify cash coverage and the current ratio before relying on the dividend.
How is debt-to-equity calculated?↓
Debt-to-equity = total debt / shareholders' equity. Total debt usually includes both short-term and long-term interest-bearing borrowings (sometimes called total liabilities in older definitions). We use the FMP "debtEquityRatioTTM" field, which is total debt over equity on a trailing twelve-month basis.
Is BACRP's D/E ratio safe?↓
"Safe" depends on the business model. A 1.21 D/E is elevated. The more important question is cash coverage: with an interest-coverage ratio of N/A and a current ratio of 0.42, BACRP can service its debt obligations at the current operating level.
How does BACRP compare to the Financial Services average?↓
The Financial Services sector median D/E is roughly 1.8. BACRP's 1.21 is materially less levered than peers (about 33% below the median).
When is high debt-to-equity dangerous?↓
High D/E is dangerous when (1) cash flow coverage is weak (interest coverage below 3x), (2) earnings are cyclical or capital-intensive, (3) refinancing exposure is concentrated in the next 12-24 months, (4) the company is paying out a large dividend or running buybacks while issuing more debt. Conversely, high D/E can be perfectly fine for stable-cash-flow utilities, REITs, and regulated financials — context matters.