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', MKDWW's financial leverage was 10.81, indicating how much debt is used to finance assets. Industry average for Consumer Electronics/Appliances in '2022' stood at 1.54.
• In '2023', MKDWW's financial leverage was 12.83, indicating how much debt is used to finance assets. The increase compared to '2022' may signal growing financial pressure. Industry average for Consumer Electronics/Appliances in '2023' stood at 2.23. Industry average increased by 0.69 compared to previous year.
• In '2023', MKDWW's financial leverage was 12.83, indicating how much debt is used to finance assets. The figure remained stable compared to '2023'. Industry average for Consumer Electronics/Appliances in '2023' stood at 2.23. Industry average remained unchanged from prior year.
• In '2024', MKDWW's financial leverage was -5.00, indicating how much debt is used to finance assets. The decrease since '2023' reflects improving financial health. Industry average for Consumer Electronics/Appliances in '2024' stood at 1.82. Industry average declined by 0.42 from previous year.
Overall, MKDWW'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.