Journal of Ecohumanism 2024 Volume: 3, No: 8, pp. 11161 – 11169 ISSN: 2752-6798 (Print) | ISSN 2752-6801 (Online) https://ecohumanism.co.uk/joe/ecohumanism DOI: https://doi.org/10.62754/joe.v3i8.5713 11161 Influence of Financial Leverage, Corporate Size, and Capital Intensity on Profitability of Listed Food Industry Firms in Muscat Stock Exchange, Oman Vamsi Prasad Kollipara 1 , Venkateswararao Podili 2 , Abstract The objective of this study is to examine the effect of financial leverage, size of the firm and capital intensity on the profitability of the listed firms in the food industry on Muscat Stock Exchange (MSX) in the Sultanate of Oman. The goal of this research is to try to gain some insight into the way these three variables affect the performance of these companies financially. The Financial Leverage indicates the ratio of total debt to equity, and reveals to what extent firms use debt to finance their operations. Size of the corporation, measured by total assets, refers to the level of operation and the resulting economies of scale. Capital intensity reflects the extent of investment in long-term assets, measured as the ratio of fixed assets to total assets. This research analyzes the financial statements of a sample of 11 public food industry firms listed on the MSE for a five-year span based on panel data analysis. To assess profitability, we use return on assets (ROA) as performance indicator. Financial leverage has a mixed effect on profitability, and results indicate that high leverage potentially increases financial risk and interest obligations, which reduce profitability. In contrast, more substantial enterprises generally prosper better owing to economies of scale, greater market presence, and improved resource access. The capital intensity is positively correlated with profitability, asset-heavy constitutes high levels of fixed asset investment, can enhance the production efficiency and competitive advantage. The findings provide useful guidance for food sector corporate managers and investors/analysts as to the strategic importance of financial management in achieving the optimal capital structure to maximize profit. The results can also guide policymakers to create a conducive environment for the food sector in Oman. Keywords: Financial Leverage, Muskat Stock Exchange, Strategic Financial Management, Financial Performance, Competitive Advantage. Introduction In a competitive market environment, the sustainability and growth potential of firms significantly depend on their profitability (Constantin Zopounidis, 2024). Profitability represents not only financially sound health from the food industry but also the food industry's innovative ability, and the ability to grow and contribute to the overall economy (Babayev, 2023. This study was conducted to study the influences of capital structure, corporate size and capital intensity on the profitability of food firms listed in Muscat stock exchange around Sultanate of Oman. Recognizing these interconnections enables stakeholders such as managers, investors, and policy makers to devise strategies that increase corporate performance and foster activity within industries. Financial leverage, the ratio of total debt in relation to equity, is probably the most crucial financing technique that can dramatically influence a firm's profitability (Arhinful & Radmehr, 2023). Although using borrowed funds ((Al-Hawatmah, 2023)) for leveraged investments increase return on investment, it also rises financial risk due to the requirement of interest payments or principal repayments. Given the need for operational stability and cost management in the food industry, it is essential to examine the effect of financial leverage on profitability due to the trade-off between risk and return. Another determinant of profitability is corporate size, which is usually measured by total assets (Yadav, Pahi, 2022). Economies of scope, increased market power and better access to resources and capital markets are usually advantages of larger firms (Eckert, Koppe, Burkatzki, et al., 2022). Such benefits can provide larger firms with opportunities to maximize production, get better terms with suppliers, and employ more 1 Research Scholar, K.L. Business School, K.L University (KLEF), India. Email: vamsi.prasad@majancollege.edu.om 2 Professor, K.L. Business School, K.L University (KLEF), India. Email: vraopodile@kluniversity.in