Published 2025 | Version v1
Journal article Open

" The Impact Of Structured Onboarding On Employee Retention

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The relationship between financial leverage and firm profitability has long been a crucial topic in corporate finance. This study aims to examine how the use of debt financing influences the profitability of firms across different sectors. Financial leverage, measured through debt-to- equity and debt-to-asset ratios, reflects a company's capital structure decisions and its ability to utilize borrowed funds for growth and value creation. However, excessive reliance on debt may lead to higher financial risk and reduced profitability due to increased interest obligations. This research explores both the positive and negative effects of leverage by analyzing secondary data from selected firms over a defined period. Profitability indicators such as return on assets (ROA) and return on equity (ROE) are used to evaluate performance. The study employs correlation and regression analysis to test the impact of leverage on profitability. The findings are expected to provide valuable insights into how optimal leverage levels can enhance firm performance, support financial decision-making, and balance the trade-off between risk and return. Ultimately, this research contributes to understanding the strategic role of financial leverage in achieving sustainable profitability and long-term financial stability.

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