Oruka Therapeutics(Orka) Financials: Financial Leverage Compared To Industry Average, Plus Other Key Ratios

Report Profitability Growth Liquidity Solvency Valuation

debt to assets debt to equity equity multiplier financial leverage

Solvency Trend (Last 5 Years)

Solvency - financial leverage

This chart shows the historical trend of financial leverage for ORKA compared to its industry average over the recent years.

Ratio Definition and Interpretation

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 '2024', ORKA's financial leverage was 1.04, indicating how much debt is used to finance assets. Industry average for Biotechnology: In Vitro & In Vivo Diagnostic Substances in '2024' stood at 1.14.
Overall, ORKA's financial leverage has remained generally stable over the past 1 years.

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

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