Blackrock Income (The)(Bkt) 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 BKT 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', BKT's financial leverage was 2.07, indicating how much debt is used to finance assets. Industry average for Investment Bankers/Brokers/Service in '2021' stood at 3.18.
• In '2022', BKT's financial leverage was 1.86, indicating how much debt is used to finance assets. The decrease since '2021' reflects improving financial health. Industry average for Investment Bankers/Brokers/Service in '2022' stood at 3.06. Industry average declined by 0.12 from previous year.
• In '2023', BKT's financial leverage was 1.58, indicating how much debt is used to finance assets. The decrease since '2022' reflects improving financial health. Industry average for Investment Bankers/Brokers/Service in '2023' stood at 2.83. Industry average declined by 0.23 from previous year.
• In '2024', BKT's financial leverage was 1.54, indicating how much debt is used to finance assets. The decrease since '2023' reflects improving financial health. Industry average for Investment Bankers/Brokers/Service in '2024' stood at 2.74. Industry average declined by 0.09 from previous year.
Overall, BKT's financial leverage has consistently declined during 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.