Equity Multiplier in Business Formulas

The Equity Multiplier is a financial leverage ratio that measures the amount of a firm’s assets that are financed by its shareholders by comparing total assets with total shareholder’s equity. And is denoted by EM.

Business formulas that make use of Equity Multiplier

fxReturn on Equity given Operating ProfitGo

FAQ

What is the Equity Multiplier?

The Equity Multiplier is a financial leverage ratio that measures the amount of a firm’s assets that are financed by its shareholders by comparing total assets with total shareholder’s equity.

Can the Equity Multiplier be negative?

{YesorNo}, the Equity Multiplier, measured in {OutputVariableMeasurementName} {CanorCannot} be negative.

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