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', PBT's financial leverage was 7.38, indicating how much debt is used to finance assets. Industry average for Oil & Gas Production in '2021' stood at 2.26.
• In '2022', PBT's financial leverage was 9.07, indicating how much debt is used to finance assets. The increase compared to '2021' may signal growing financial pressure. Industry average for Oil & Gas Production in '2022' stood at 2.30. Industry average increased by 0.04 compared to previous year.
• In '2023', PBT's financial leverage was 18.78, indicating how much debt is used to finance assets. The increase compared to '2022' may signal growing financial pressure. Industry average for Oil & Gas Production in '2023' stood at 2.14. Industry average declined by 0.16 from previous year.
• In '2024', PBT's financial leverage was 22.18, indicating how much debt is used to finance assets. The increase compared to '2023' may signal growing financial pressure. Industry average for Oil & Gas Production in '2024' stood at 1.90. Industry average declined by 0.24 from previous year.
Overall, PBT'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.