Calamos Global Total Return Fund(Cgo) 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 CGO 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', CGO's financial leverage was 1.47, indicating how much debt is used to finance assets. Industry average for Investment Managers in '2021' stood at 1.87.
• In '2022', CGO's financial leverage was 1.47, indicating how much debt is used to finance assets. The figure remained stable compared to '2021'. Industry average for Investment Managers in '2022' stood at 1.78. Industry average declined by 0.09 from previous year.
• In '2023', CGO's financial leverage was 1.51, indicating how much debt is used to finance assets. The increase compared to '2022' may signal growing financial pressure. Industry average for Investment Managers in '2023' stood at 1.67. Industry average declined by 0.10 from previous year.
• In '2024', CGO's financial leverage was 1.54, indicating how much debt is used to finance assets. The increase compared to '2023' may signal growing financial pressure. Industry average for Investment Managers in '2024' stood at 1.81. Industry average increased by 0.13 compared to previous year.
Overall, CGO's financial leverage has steadily improved 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.