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', GP's financial leverage was 1.10, indicating how much debt is used to finance assets. Industry average for Construction/Ag Equipment/Trucks in '2021' stood at 2.94.
• In '2022', GP's financial leverage was 1.26, indicating how much debt is used to finance assets. The increase compared to '2021' may signal growing financial pressure. Industry average for Construction/Ag Equipment/Trucks in '2022' stood at 2.94. Industry average increased by 0.00 compared to previous year.
• In '2023', GP's financial leverage was 1.82, indicating how much debt is used to finance assets. The increase compared to '2022' may signal growing financial pressure. Industry average for Construction/Ag Equipment/Trucks in '2023' stood at 2.88. Industry average declined by 0.06 from previous year.
• In '2024', GP's financial leverage was 2.77, indicating how much debt is used to finance assets. The increase compared to '2023' may signal growing financial pressure. Industry average for Construction/Ag Equipment/Trucks in '2024' stood at 3.11. Industry average increased by 0.23 compared to previous year.
Overall, GP's financial leverage has been volatile but showed an upward trend 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.