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', NFJ's financial leverage was 1.02, indicating how much debt is used to finance assets. Industry average for Finance: Consumer Services in '2022' stood at 2.77.
• In '2023', NFJ's financial leverage was 1.01, indicating how much debt is used to finance assets. The decrease since '2022' reflects improving financial health. Industry average for Finance: Consumer Services in '2023' stood at 2.65. Industry average declined by 0.12 from previous year.
• In '2024', NFJ's financial leverage was 1.00, indicating how much debt is used to finance assets. The decrease since '2023' reflects improving financial health. Industry average for Finance: Consumer Services in '2024' stood at 2.43. Industry average declined by 0.22 from previous year.
• In '2025', NFJ's financial leverage was 1.00, indicating how much debt is used to finance assets. The decrease since '2024' reflects improving financial health. Industry average for Finance: Consumer Services in '2025' stood at 1.78. Industry average declined by 0.65 from previous year.
Overall, NFJ's financial leverage has remained generally stable 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.