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', LFMDP's financial leverage was 1.86, indicating how much debt is used to finance assets. Industry average for Medical/Nursing Services in '2021' stood at 2.64.
• In '2022', LFMDP's financial leverage was 3.78, indicating how much debt is used to finance assets. The increase compared to '2021' may signal growing financial pressure. Industry average for Medical/Nursing Services in '2022' stood at 2.52. Industry average declined by 0.12 from previous year.
• In '2023', LFMDP's financial leverage was -25.31, indicating how much debt is used to finance assets. The decrease since '2022' reflects improving financial health. Industry average for Medical/Nursing Services in '2023' stood at 2.06. Industry average declined by 0.46 from previous year.
• In '2024', LFMDP's financial leverage was -66.13, indicating how much debt is used to finance assets. The decrease since '2023' reflects improving financial health. Industry average for Medical/Nursing Services in '2024' stood at 2.55. Industry average increased by 0.49 compared to previous year.
Overall, LFMDP's financial leverage has been volatile but showed a downward 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.