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Equity Multiplier

Calculate equity multiplier for leverage analysis.

Equity Multiplier Calculator

Results

Equity Multiplier

Debt-to-Assets Ratio

Equity-to-Assets Ratio

Analysis

Formula & Usage

Equity Multiplier Formula

Equity Multiplier = Total Assets ÷ Total Equity

What it Measures

  • • Financial leverage of a company
  • • How much debt is used to finance assets
  • • Risk level of the company's capital structure
  • • Efficiency of equity utilization

Interpretation

  • • Higher ratio = More leverage/debt
  • • Lower ratio = More conservative financing
  • • 1.0 = No debt (all equity financing)
  • • Compare with industry averages

Examples

Conservative Company

Low leverage, equity-heavy financing

Leveraged Company

High leverage, debt-heavy financing

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