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', TOON's financial leverage was 1.22, indicating how much debt is used to finance assets. Industry average for Movies/Entertainment in '2021' stood at 2.39.
• In '2022', TOON's financial leverage was 1.63, indicating how much debt is used to finance assets. The increase compared to '2021' may signal growing financial pressure. Industry average for Movies/Entertainment in '2022' stood at 2.92. Industry average increased by 0.54 compared to previous year.
• In '2023', TOON's financial leverage was 2.16, indicating how much debt is used to finance assets. The increase compared to '2022' may signal growing financial pressure. Industry average for Movies/Entertainment in '2023' stood at 0.40. Industry average declined by 2.52 from previous year.
• In '2024', TOON's financial leverage was 2.28, indicating how much debt is used to finance assets. The increase compared to '2023' may signal growing financial pressure. Industry average for Movies/Entertainment in '2024' stood at 1.81. Industry average increased by 1.41 compared to previous year.
Overall, TOON's financial leverage has been volatile but showed an upward 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.