Financial leverage is just a multiplication symbol. With this tool, the result of investment can be amplified, and whether the final result is profit or loss, it will increase in a fixed proportion. Therefore, before using this tool, we must carefully analyze the income expectation and possible risks in investment projects.

In addition, it must be noted that when using financial leverage tools, cash flow expenditure may increase, otherwise once the capital chain breaks, even if the final result may be huge gains, investors must be out early.

Leverage ratio is the ratio of risk to assets on a company's balance sheet. Leverage ratio is an index to measure the debt risk of a company, which reflects the repayment ability of the company from the side.