Name: Financial Leverage

Definition: Financial leverage tells you how much borrowed money the company uses to boost its size and profits. Using leverage can help a business grow faster, but it also increases pressure if sales slow down. Moderate leverage is common and often healthy. Excessive leverage can be dangerous, especially during tough economic times.

Interpretation:
• In '2020', IMTE's financial leverage was 8.22, indicating how much debt is used to finance assets. Industry average for Consumer Electronics/Appliances in '2020' stood at 5.15.
• In '2021', IMTE's financial leverage was 2.88, indicating how much debt is used to finance assets. The decrease since '2020' reflects improving financial health. Industry average for Consumer Electronics/Appliances in '2021' stood at 1.89. Industry average declined by 3.26 from previous year.
• In '2022', IMTE's financial leverage was 1.57, indicating how much debt is used to finance assets. The decrease since '2021' reflects improving financial health. Industry average for Consumer Electronics/Appliances in '2022' stood at 1.54. Industry average declined by 0.35 from previous year.
• In '2023', IMTE's financial leverage was 1.53, indicating how much debt is used to finance assets. The decrease since '2022' reflects improving financial health. Industry average for Consumer Electronics/Appliances in '2023' stood at 2.23. Industry average increased by 0.69 compared to previous year.
Overall, IMTE's financial leverage has been volatile but showed a downward trend over the past 4 years.

Formula: Financial Leverage = Average Total Assets / Average Shareholders' Equity

Good Range: 1 to 3 common; above 3 may indicate high leverage risk.