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', HL's financial leverage was 1.55, indicating how much debt is used to finance assets. Industry average for Mining & Quarrying of Nonmetallic Minerals (No Fuels) in '2021' stood at 1.10.
• In '2022', HL's financial leverage was 1.51, indicating how much debt is used to finance assets. The decrease since '2021' reflects improving financial health. Industry average for Mining & Quarrying of Nonmetallic Minerals (No Fuels) in '2022' stood at 1.45. Industry average increased by 0.35 compared to previous year.
• In '2023', HL's financial leverage was 1.50, indicating how much debt is used to finance assets. The decrease since '2022' reflects improving financial health. Industry average for Mining & Quarrying of Nonmetallic Minerals (No Fuels) in '2023' stood at 1.93. Industry average increased by 0.48 compared to previous year.
• In '2024', HL's financial leverage was 1.50, indicating how much debt is used to finance assets. The decrease since '2023' reflects improving financial health. Industry average for Mining & Quarrying of Nonmetallic Minerals (No Fuels) in '2024' stood at 2.29. Industry average increased by 0.36 compared to previous year.
Overall, HL'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.