FINANCIAL LEVERAGE ANALYSIS WITH SPECIAL REFERENCE TO WEG INDUSTRIED, HOSUR.

Abstract

Financial leverage is a measure of how much a company uses equity and debt to acquire their assets. The financial leverage ratio indicates the extent to which a company has used borrowed money to fund its capital structure. Profitability is a measure of an organization's profit relative to its expenses. The present study has been undertaken to examine and understand how Leverage plays a crucial role in the profitability of the company. It is concerned with examining the profitability position of the company, for a period of five years (2020-2024). The study covers the comparison between previous year’s data with current year data. Data for the study has been collected over a period of five years, from respective company’ annual reports from their official websites.