Axil Brands(Axil) Financials: Financial Leverage Compared To Industry Average, Plus Other Key Ratios
Solvency Trend (Last 5 Years)
Solvency - financial leverage
This chart shows the historical trend of financial leverage for AXIL compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Financial Leverage
Definition: Financial leverage tells you how much borrowed money the company uses to boost its size and profits. Using leverage can help a business grow faster, but it also increases pressure if sales slow down. Moderate leverage is common and often healthy. Excessive leverage can be dangerous, especially during tough economic times.
Interpretation:
• In '2021', AXIL's financial leverage was 3.65, indicating how much debt is used to finance assets. Industry average for Package Goods/Cosmetics in '2021' stood at 2.44.
• In '2022', AXIL's financial leverage was 4.07, indicating how much debt is used to finance assets. The increase compared to '2021' may signal growing financial pressure. Industry average for Package Goods/Cosmetics in '2022' stood at 1.96. Industry average declined by 0.48 from previous year.
• In '2023', AXIL's financial leverage was 1.61, indicating how much debt is used to finance assets. The decrease since '2022' reflects improving financial health. Industry average for Package Goods/Cosmetics in '2023' stood at 2.53. Industry average increased by 0.56 compared to previous year.
• In '2024', AXIL's financial leverage was 1.47, indicating how much debt is used to finance assets. The decrease since '2023' reflects improving financial health. Industry average for Package Goods/Cosmetics in '2024' stood at 2.38. Industry average declined by 0.15 from previous year.
Overall, AXIL's financial leverage has been volatile but showed a downward trend over the past 4 years.
Formula: Financial Leverage = Average Total Assets / Average Shareholders' Equity
Good Range: 1 to 3 common; above 3 may indicate high leverage risk.