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 '2021', OABI's financial leverage was 1.30, indicating how much debt is used to finance assets. Industry average for Biotechnology: Commercial Physical & Biological Resarch in '2021' stood at 1.41.
• In '2022', OABI's financial leverage was 1.26, indicating how much debt is used to finance assets. The decrease since '2021' reflects improving financial health. Industry average for Biotechnology: Commercial Physical & Biological Resarch in '2022' stood at 1.08. Industry average declined by 0.33 from previous year.
• In '2023', OABI's financial leverage was 1.21, indicating how much debt is used to finance assets. The decrease since '2022' reflects improving financial health. Industry average for Biotechnology: Commercial Physical & Biological Resarch in '2023' stood at 1.67. Industry average increased by 0.60 compared to previous year.
• In '2024', OABI's financial leverage was 1.16, indicating how much debt is used to finance assets. The decrease since '2023' reflects improving financial health. Industry average for Biotechnology: Commercial Physical & Biological Resarch in '2024' stood at 1.86. Industry average increased by 0.19 compared to previous year.
Overall, OABI's financial leverage has consistently declined during 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.