Escalade(Esca) 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 ESCA 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', ESCA's financial leverage was 1.72, indicating how much debt is used to finance assets. Industry average for Recreational Games/Products/Toys in '2021' stood at 1.84.
• In '2022', ESCA's financial leverage was 1.80, indicating how much debt is used to finance assets. The increase compared to '2021' may signal growing financial pressure. Industry average for Recreational Games/Products/Toys in '2022' stood at 2.13. Industry average increased by 0.29 compared to previous year.
• In '2023', ESCA's financial leverage was 1.71, indicating how much debt is used to finance assets. The decrease since '2022' reflects improving financial health. Industry average for Recreational Games/Products/Toys in '2023' stood at 2.02. Industry average declined by 0.10 from previous year.
• In '2024', ESCA's financial leverage was 1.44, indicating how much debt is used to finance assets. The decrease since '2023' reflects improving financial health. Industry average for Recreational Games/Products/Toys in '2024' stood at 1.18. Industry average declined by 0.84 from previous year.
Overall, ESCA'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.