Bitcoin Depot Warrant(Btmww) 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 BTMWW 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 '2022', BTMWW's financial leverage was 27.96, indicating how much debt is used to finance assets. Industry average for Finance: Consumer Services in '2022' stood at 2.77.
• In '2023', BTMWW's financial leverage was -19.50, indicating how much debt is used to finance assets. The decrease since '2022' reflects improving financial health. Industry average for Finance: Consumer Services in '2023' stood at 2.65. Industry average declined by 0.12 from previous year.
• In '2024', BTMWW's financial leverage was -3.92, indicating how much debt is used to finance assets. The increase compared to '2023' may signal growing financial pressure. Industry average for Finance: Consumer Services in '2024' stood at 2.43. Industry average declined by 0.22 from previous year.
Overall, BTMWW's financial leverage has been volatile but showed a downward trend over the past 3 years.
Formula: Financial Leverage = Average Total Assets / Average Shareholders' Equity
Good Range: 1 to 3 common; above 3 may indicate high leverage risk.