Financial leverage allows Microsoft Xbox 360 to use their balance sheet to expand their business and increase their profits… … "Financial Leverage (Microsoft Xbox 360)" will have a long-term positive impact on the 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 (Microsoft Xbox 360)" is a difficult qualitative factor to defend, so competing institutions will have an easy time overcoming it.