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 '2022', ROIV's financial leverage was 1.56, indicating how much debt is used to finance assets. Industry average for Biotechnology: Pharmaceutical Preparations in '2022' stood at 1.54.
• In '2023', ROIV's financial leverage was 1.77, indicating how much debt is used to finance assets. The increase compared to '2022' may signal growing financial pressure. Industry average for Biotechnology: Pharmaceutical Preparations in '2023' stood at 1.32. Industry average declined by 0.22 from previous year.
• In '2024', ROIV's financial leverage was 1.35, indicating how much debt is used to finance assets. The decrease since '2023' reflects improving financial health. Industry average for Biotechnology: Pharmaceutical Preparations in '2024' stood at 1.51. Industry average increased by 0.19 compared to previous year.
• In '2025', ROIV's financial leverage was 1.19, indicating how much debt is used to finance assets. The decrease since '2024' reflects improving financial health. Industry average for Biotechnology: Pharmaceutical Preparations in '2025' stood at 1.56. Industry average increased by 0.05 compared to previous year.
Overall, ROIV'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.