Sika AG (SWX:SIK) delivered an ROE of 19.03% over the past 12 months, which is an impressive feat relative to its industry average of 13.01% during the same period. But what is more interesting is whether SIK can sustain this above-average ratio. This can be measured by looking at the company’s financial leverage. With more debt, SIK can invest even more and earn more money, thus pushing up its returns.
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