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Financial leverage allows Larsen and Toubro to use their balance sheet to expand their business and increase their profits… … "Financial Leverage (Larsen and Toubro)" has a significant impact, so an analyst should put more weight into it. "Financial Leverage (Larsen and Toubro)" will have a long-term positive impact on the this entity, which adds to its value. This statements will have a short-term positive impact on this entity, which adds to its value. This qualitative factor will lead to a decrease in costs. This statement will lead to an increase in profits for this entity. "Financial Leverage (Larsen and Toubro)" is an easily defendable qualitative factor, so competing institutions will have a difficult time overcoming it.