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', RSVRW's financial leverage was 1.98, indicating how much debt is used to finance assets. Industry average for Services-Misc. Amusement & Recreation in '2022' stood at 2.35.
• In '2023', RSVRW's financial leverage was 2.07, indicating how much debt is used to finance assets. The increase compared to '2022' may signal growing financial pressure. Industry average for Services-Misc. Amusement & Recreation in '2023' stood at 1.92. Industry average declined by 0.43 from previous year.
• In '2024', RSVRW's financial leverage was 2.19, indicating how much debt is used to finance assets. The increase compared to '2023' may signal growing financial pressure. Industry average for Services-Misc. Amusement & Recreation in '2024' stood at 3.06. Industry average increased by 1.14 compared to previous year.
• In '2025', RSVRW's financial leverage was 2.30, indicating how much debt is used to finance assets. The increase compared to '2024' may signal growing financial pressure. Industry average for Services-Misc. Amusement & Recreation in '2025' stood at 2.30. Industry average declined by 0.76 from previous year.
Overall, RSVRW's financial leverage has steadily improved 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.