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', OXBR's financial leverage was 1.06, indicating how much debt is used to finance assets. Industry average for Property-Casualty Insurers in '2021' stood at 3.84.
• In '2022', OXBR's financial leverage was 1.08, indicating how much debt is used to finance assets. The increase compared to '2021' may signal growing financial pressure. Industry average for Property-Casualty Insurers in '2022' stood at 4.12. Industry average increased by 0.29 compared to previous year.
• In '2023', OXBR's financial leverage was 1.22, indicating how much debt is used to finance assets. The increase compared to '2022' may signal growing financial pressure. Industry average for Property-Casualty Insurers in '2023' stood at 4.32. Industry average increased by 0.20 compared to previous year.
• In '2024', OXBR's financial leverage was 1.69, indicating how much debt is used to finance assets. The increase compared to '2023' may signal growing financial pressure. Industry average for Property-Casualty Insurers in '2024' stood at 4.31. Industry average declined by 0.01 from previous year.
Overall, OXBR's financial leverage has been volatile but showed an upward 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.