Equity Multiplier in Financial Ratios 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.

Formulas to find Equity Multiplier in Financial Ratios

fxEquity MultiplierGo

List of variables in Financial Ratios formulas

fx Total Assets Go

fx Total Shareholders' Equity Go

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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