Sonder Warrants(Sondw) Financials: Financial Leverage Compared To Industry Average, Plus Other Key Ratios
Solvency Trend (Last 5 Years)
Solvency - financial leverage
This chart shows the historical trend of financial leverage for SONDW compared to its industry average over the recent years.
Ratio Definition and Interpretation
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 '2020', SONDW's financial leverage was -0.35, indicating how much debt is used to finance assets. Industry average for Hotels/Resorts in '2020' stood at -0.35.
• In '2021', SONDW's financial leverage was -0.26, indicating how much debt is used to finance assets. The increase compared to '2020' may signal growing financial pressure. Industry average for Hotels/Resorts in '2021' stood at 2.89. Industry average increased by 3.24 compared to previous year.
• In '2022', SONDW's financial leverage was -1.90, indicating how much debt is used to finance assets. The decrease since '2021' reflects improving financial health. Industry average for Hotels/Resorts in '2022' stood at 3.00. Industry average increased by 0.11 compared to previous year.
• In '2023', SONDW's financial leverage was -6.32, indicating how much debt is used to finance assets. The decrease since '2022' reflects improving financial health. Industry average for Hotels/Resorts in '2023' stood at 2.05. Industry average declined by 0.94 from previous year.
Overall, SONDW'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.