Background info:

ROA (Return on Assets) and ROE (Return on Equity) are both profitability ratios that are used to evaluate a company's efficiency and performance. They both measure the return generated by a company's assets or equity, respectively.

ROA is a measure of how efficiently a company is using its assets to generate profits. It is calculated by dividing net income by total assets. A higher ROA indicates that a company is generating more income per dollar of assets and is considered more efficient.

ROE, on the other hand, measures how much profit a company generates in relation to its shareholders' equity. It is calculated by dividing net income by shareholders' equity. A higher ROE indicates that a company is generating more income per dollar of equity and is considered more profitable.

Financial leverage refers to the use of borrowed money or debt to finance a company's operations or investments. The goal of financial leverage is to increase the potential return on an investment by using borrowed money to magnify the returns on equity.

Question asked that needs answering:

What happens if the business is not profitable and doesn't make enough to service the debt?