{"id":8124,"date":"2023-06-20T00:26:28","date_gmt":"2023-06-19T18:56:28","guid":{"rendered":"https:\/\/razorpay.com\/learn\/?p=8124"},"modified":"2024-03-11T15:16:53","modified_gmt":"2024-03-11T09:46:53","slug":"financial-leverage","status":"publish","type":"post","link":"https:\/\/razorpay.com\/learn\/business-banking\/financial-leverage\/","title":{"rendered":"A Guide to Financial Leverage"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Companies and businesses use financial leverage as an investment strategy to buy more assets in exchange for borrowed capital. It helps build a company&#8217;s asset base and expand the overall business. The leverage is accessed with the expectation that earning or capital gains from the newly purchased asset will exceed its cost of borrowing.\u00a0<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69f22a5d8fc11\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69f22a5d8fc11\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/financial-leverage\/#What-is-Financial-Leverage\" >What is Financial Leverage?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/financial-leverage\/#Understanding-Financial-Leverage-and-Its-Importance\" >Understanding Financial Leverage and Its Importance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/financial-leverage\/#Examples-of-Financial-Leverage\" >Examples of Financial Leverage<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/financial-leverage\/#Financial-Leverage-for-a-Company\" >Financial Leverage for a Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/financial-leverage\/#Financial-Leverage-for-Personal-Finances\" >Financial Leverage for Personal Finances<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/financial-leverage\/#How-to-Calculate-Financial-Leverage\" >How to Calculate Financial Leverage?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/financial-leverage\/#Total-Debt-to-Total-Assets-Ratio\" >Total-Debt-to-Total-Assets Ratio\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/financial-leverage\/#Debt-to-Equity-DE-Ratio\" >Debt-to-Equity (D\/E) Ratio<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/financial-leverage\/#Debt-to-EBITDA-Ratio\" >Debt-to-EBITDA Ratio<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/financial-leverage\/#Equity-Multiplier\" >Equity Multiplier<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/financial-leverage\/#Degree-of-Financial-Leverage\" >Degree of Financial Leverage<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/financial-leverage\/#What-is-a-Good-Financial-Leverage-Ratio\" >What is a Good Financial Leverage Ratio?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/financial-leverage\/#Advantages-and-Disadvantages-of-Financial-Leverage\" >Advantages and Disadvantages of Financial Leverage<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/financial-leverage\/#Financial-Leverage-vs-Margin\" >Financial Leverage vs Margin<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/financial-leverage\/#FAQs\" >FAQs<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What-is-Financial-Leverage\"><\/span><b>What is Financial Leverage?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Financial leverage is the use of borrowed capital to fund investment in assets or projects. These assets are bought with the expectation of generating returns on risk capital.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the case of asset-backed lending, companies use previous assets as collateral for the loan. For a cash flow loan, the creditworthiness or the credit score of the company backs the loan.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Understanding-Financial-Leverage-and-Its-Importance\"><\/span><b>Understanding Financial Leverage and Its Importance<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">There are three options available for a company to finance its purchases. They use equity, debt, and leases to undertake new investments and projects. Businesses use leverage finance to invest in their future and to increase shareholder value. It is a much safer option than issuing stocks to raise capital for purchases.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Financial leverage helps both investors and owners of companies. For example, investors use it to get the maximum return on investment. It is possible by using options, futures, and margin accounts to leverage their investments. In contrast, business owners use this to finance their assets. They use debt financing to invest in their business operations.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Examples-of-Financial-Leverage\"><\/span><b>Examples of Financial Leverage<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li aria-level=\"1\">\n<h3><span class=\"ez-toc-section\" id=\"Financial-Leverage-for-a-Company\"><\/span><b>Financial Leverage for a Company<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Suppose a company uses \u20b910,00,000 of its cash and a loan of $90,00,000 to buy a new factory worth a total of \u20b91 Cr. If this new factory generates \u20b915,00,000 in annual profit, it means that it uses<\/span> <span style=\"font-weight: 400;\">financial leverage<\/span> <span style=\"font-weight: 400;\">to generate a profit of \u20b915,00,000 on a cash investment of \u20b910,00,000. This means the investment in the factory generates a 150% return on its investment.\u00a0<\/span><\/p>\n<ul>\n<li aria-level=\"1\">\n<h3><span class=\"ez-toc-section\" id=\"Financial-Leverage-for-Personal-Finances\"><\/span><b>Financial Leverage for Personal Finances<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Suppose an investor has \u20b92,00,000 of their own money to invest. They take an extra amount of \u20b920,00,000 as a loan from a bank at the interest rate of 6%. Next, they invest the whole \u20b922,00,000 in an investment fund that has an annual return of 15% per year.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This means at the end of the financial year, the investment generated a \u20b93,30,000 return. If we subtract the interest on the borrowed money, which is \u20b91,20,000, and the initial investment of \u20b92,00,000, the net gain from this investment stands at \u20b910,000. In other words,<\/span> <span style=\"font-weight: 400;\">\u20b910,000 is the financial leverage.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"How-to-Calculate-Financial-Leverage\"><\/span><b>How to Calculate Financial Leverage?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li aria-level=\"1\">\n<h3><span class=\"ez-toc-section\" id=\"Total-Debt-to-Total-Assets-Ratio\"><\/span><b>Total-Debt-to-Total-Assets Ratio\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The Total-Debt-to-Total-Assets Ratio is a financial metric that helps to understand how many degrees of a company\u2019s assets are funded by debt. To calculate the ratio, one must divide the company&#8217;s total debt by total assets.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The formula to calculate the ratio is:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Total-debt-to-assets Ratio = Total Debt \u00f7 Total assets<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To find the equity-to-asset ratio companies can subtract the result by 1.\u00a0<\/span><\/p>\n<ul>\n<li aria-level=\"1\">\n<h3><span class=\"ez-toc-section\" id=\"Debt-to-Equity-DE-Ratio\"><\/span><b>Debt-to-Equity (D\/E) Ratio<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The debt-to-equity ratio is a financial leverage metric to compare what the company has borrowed against what it has raised from private investors. If the ratio is greater than one, it means that the company has more debt than equity. The metric varies for each company or industry.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The formula of the Debt-to-Equity Ratio is:\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Debt-to-Equity Ratio = Total Debt \u00f7 Total Equity<\/span><\/p>\n<ul>\n<li aria-level=\"1\">\n<h3><span class=\"ez-toc-section\" id=\"Debt-to-EBITDA-Ratio\"><\/span><b>Debt-to-EBITDA Ratio<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">EBITDA or Earnings Before Interest, Taxes, Depreciation, and Amortisation helps to track the underlying profitability of companies. Businesses use this ratio to understand if the debt concerning operating income is controllable or not.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If a company has a high debt-to-EBITDA, it means that the company has more debt than what it makes. The more leverage it is carrying the higher this ratio will be.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The formula for this ratio is:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Debt-to-EBITDA = Total Debt \u00f7 Earnings Before Interest, Taxes, Depreciation, and Amortisation<\/span><\/p>\n<ul>\n<li aria-level=\"1\">\n<h3><span class=\"ez-toc-section\" id=\"Equity-Multiplier\"><\/span><b>Equity Multiplier<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The equity multiplier is calculated by dividing total assets by total equity. It helps to understand the ownership weightage of a company by analysing how its assets have been financed.\u00a0 If a company has a low equity multiplier it means that it has financed a large portion of its assets with equity. Thus, meaning that it is not a highly leveraged company. The equity multiplier formula is:\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Equity Multiplier = Total Assets \u00f7Total Equity<\/span><\/p>\n<ul>\n<li aria-level=\"1\">\n<h3><span class=\"ez-toc-section\" id=\"Degree-of-Financial-Leverage\"><\/span><b>Degree of Financial Leverage<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The Degree of financial leverage is calculated by dividing the change in the percentage of a company&#8217;s earnings per share by its earnings before interest and taxes. The main goal of calculating this degree is to understand the sensitivity of a company&#8217;s earnings per share. A business with a higher DFL indicates a higher degree of leverage.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The formula for the degree of financial leverage is:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Degree of Financial Leverage = Percentage Change in Earnings Per Share \u00f7 Percentage Change in net earnings before interests or taxes.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What-is-a-Good-Financial-Leverage-Ratio\"><\/span><b>What is a Good Financial Leverage Ratio?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A good<\/span> <span style=\"font-weight: 400;\">financial leverage<\/span> <span style=\"font-weight: 400;\">ratio depends on the personal preference of the investor and the company. Some investors like a bit of risk and see leverage as an opportunity. Whereas other investors discredit the idea of risk.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If a company has a debt-to-equity ratio of more than 1, it means that the company has a greater risk of debt obligations.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Advantages-and-Disadvantages-of-Financial-Leverage\"><\/span><b>Advantages and Disadvantages of Financial Leverage<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li aria-level=\"1\"><b>Advantages<\/b><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Business owners and investors use this leverage to increase their profit margins. Investors can earn more profits by using leveraged finances along with the initial upfront capital. Leveraged finances provide investors with the means to invest in more expensive and better investment options.\u00a0<\/span><\/p>\n<ul>\n<li aria-level=\"1\"><b>Disadvantages<\/b><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Using financial leverage to fund investments involves massive downside risks. Depending upon the investment, it sometimes results in huge losses more than the initial capital investment. Investors should have an extensive idea about their financial positions and the investment option they want to invest in.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Financial-Leverage-vs-Margin\"><\/span><b>Financial Leverage vs Margin<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Margin is a type of financial leverage<\/span> <span style=\"font-weight: 400;\">in which existing cash and securities are used as collateral to increase investors buying power. It allows investors to borrow capital from a broker to purchase securities, options, or futures contracts. They borrow this money in anticipation that they would receive higher returns in the future.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Margin is a type of financial leverage that helps to increase buying power.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Example: If an investor needs \u20b9100,000 in collateral to purchase \u20b910,00,000 worth of securities, they can get a 1:10 margin.<\/span><\/p>\n<p><b>Contribution of RazorpayX in Helping Businesses to Invest<\/b><\/p>\n<p><span style=\"font-weight: 400;\">RazorpayX is a new-age business banking platform that helps businesses to conduct their financial operations with ease. The banking suite simplifies invoice tracking, scheduling of payments, paying taxes, applying for loans, and viewing financial reports for businesses.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">One of the essential offerings of the banking suite is the <\/span><a href=\"https:\/\/razorpay.com\/x\/current-accounts\/\"><span style=\"font-weight: 400;\">current account<\/span><\/a><span style=\"font-weight: 400;\">. When a company opens its current account with RazorpayX it enjoys unlimited transactions with next-to-nothing yearly maintenance charges.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Another great offering that sets apart RazorpayX from all its competitors is the <\/span><a href=\"https:\/\/razorpay.com\/x\/forex\/\"><span style=\"font-weight: 400;\">Forex funding<\/span><\/a><span style=\"font-weight: 400;\"> facility. It helps new businesses to meet their financial requirements.<\/span><\/p>\n<p style=\"text-align: center;\"><a style=\"border-radius: 3px; background: #528FF0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/razorpay.com\/x\/?r=blog_cta_business_banking_financial_leverage&amp;utm_source=blog&amp;utm_medium=cta\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">Check out RazorpayX<\/a><\/p>\n<p><strong>Read more:<\/strong><\/p>\n<p><a href=\"https:\/\/razorpay.com\/learn\/business-banking\/current-account-opening-documents-required\/\"><span style=\"font-weight: 400;\">Current Account Documents<\/span><\/a><\/p>\n<p><a href=\"https:\/\/razorpay.com\/blog\/business-banking\/what-is-current-account\/\"><span style=\"font-weight: 400;\">What is Current Account<\/span><\/a><\/p>\n<p><a href=\"https:\/\/razorpay.com\/learn\/business-banking\/what-is-a-business-account-for-startups\/\"><span style=\"font-weight: 400;\">Business Account<\/span><\/a><\/p>\n<p><a href=\"https:\/\/razorpay.com\/learn\/business-banking\/mab-monthly-average-balance-current-account\/\"><span style=\"font-weight: 400;\">Monthly Average Balance<\/span><\/a><\/p>\n<p><a href=\"https:\/\/razorpay.com\/blog\/business-banking\/zero-balance-current-account-business\/\"><span style=\"font-weight: 400;\">Zero Balance Current Account<\/span><\/a><\/p>\n<p><a href=\"https:\/\/razorpay.com\/learn\/business-banking\/types-of-current-accounts\/\"><span style=\"font-weight: 400;\">Types of Current Account<\/span><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"FAQs\"><\/span>FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\t\t\t<div id=\"rank-math-rich-snippet-wrapper\" class=\"\">\n\n\t\t\t\t\n\t\t\t<\/div>\n\t\t\n","protected":false},"excerpt":{"rendered":"<p>Companies and businesses use financial leverage as an investment strategy to buy more assets in exchange for borrowed capital. It helps build a company&#8217;s asset base and expand the overall business. The leverage is accessed with the expectation that earning or capital gains from the newly purchased asset will exceed its cost of borrowing.\u00a0 What<\/p>\n","protected":false},"author":151156542,"featured_media":8125,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3437],"tags":[3673],"class_list":{"0":"post-8124","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-banking","8":"tag-financial-leverage"},"_links":{"self":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/8124","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/users\/151156542"}],"replies":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/comments?post=8124"}],"version-history":[{"count":3,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/8124\/revisions"}],"predecessor-version":[{"id":10323,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/8124\/revisions\/10323"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media\/8125"}],"wp:attachment":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media?parent=8124"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/categories?post=8124"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/tags?post=8124"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}