Vsee Health(Vsee) 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 VSEE 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 '2021', VSEE's financial leverage was 1.62, indicating how much debt is used to finance assets. Industry average for Medical/Nursing Services in '2021' stood at 2.64.
• In '2022', VSEE's financial leverage was 2.92, indicating how much debt is used to finance assets. The increase compared to '2021' may signal growing financial pressure. Industry average for Medical/Nursing Services in '2022' stood at 2.52. Industry average declined by 0.12 from previous year.
Overall, VSEE's financial leverage has been volatile but showed an upward trend over the past 2 years.
Formula: Financial Leverage = Average Total Assets / Average Shareholders' Equity
Good Range: 1 to 3 common; above 3 may indicate high leverage risk.