Jinsi ya kukokotoa Equity Multiplier

Equity Multiplier ni nini?

The equity multiplier measures financial leverage — how much of a company's assets are financed by equity versus debt. Equity multiplier = Total assets / Total shareholders' equity. A higher value means more debt financing.

Mwongozo wa Hatua kwa Hatua

1. 1Get total assets from the balance sheet
2. 2Get total shareholders' equity from the balance sheet
3. 3Equity multiplier = Total assets / Total equity
4. 4It forms one leg of the DuPont ROE decomposition: ROE = Net margin × Asset turnover × Equity multiplier

Mifano Iliyotatuliwa