Big Tree Cloud Ordinary Shares(Dsy) 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 DSY 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', DSY's financial leverage was 5.36, indicating how much debt is used to finance assets. Industry average for Containers/Packaging in '2022' stood at 3.82.
• In '2023', DSY's financial leverage was 13.94, indicating how much debt is used to finance assets. The increase compared to '2022' may signal growing financial pressure. Industry average for Containers/Packaging in '2023' stood at 3.34. Industry average declined by 0.47 from previous year.
• In '2024', DSY's financial leverage was -5.27, indicating how much debt is used to finance assets. The decrease since '2023' reflects improving financial health. Industry average for Containers/Packaging in '2024' stood at 2.27. Industry average declined by 1.07 from previous year.
Overall, DSY'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.