It's important to note that while leveraging can potentially yield higher returns, it also comes with higher risks, particularly if the company takes on too much debt or is unable to generate sufficient revenue to cover its fixed expenses. It's important for companies to carefully consider their leverage strategies and ensure that they are balancing the potential benefits with the associated risks.

In your opinion, what are some key factors that companies should consider when determining the appropriate level of leverage for their specific business model and industry?