Do you agree or disagree with the following thoughts? Why or why not? What would you add to contribute to this discussion? There are various signs that a Chief Financial Officer (CFO) should take note of when it comes to financial leverage. One telling sign of too much financial leverage is increased revenue variation. Because leverage magnifies losses and profits, experiencing greater losses along with increased profits is a primary indicator that financial leverage is the culprit. Another tactic is by looking at the firm's debt-to-equity ratio and comparing it to other firms in the industry and the industry average. High debt-to-equity can reduce profitability due to fixed debt payments and is another sign of too much financial leverage. To reverse this, a CFO could reduce the amount of debt in their capital structure. This can be achieved by either paying off that existing debt or by increasing the amount of equity raised to fund new projects or investments