Equity Multiplier Calculator
Calculate the equity multiplier to measure financial leverage — how much of a company's assets are financed by equity.
How to Use the Equity Multiplier Calculator
- Enter total assets.
- Enter total shareholders' equity.
- Click Calculate.
- Review equity multiplier and debt ratio.
Anwendungsfälle
- •DuPont analysis component
- •Leverage assessment
- •Capital structure review
Formel
Equity Multiplier = Total Assets / Total Equity
Häufig gestellte Fragen
What does the equity multiplier show?
It shows the proportion of assets financed by equity. A value of 2 means half the assets are equity-financed.
Is a higher equity multiplier better?
Higher values mean more leverage, which amplifies both returns and risk.
Is this calculator free?
Yes, all calculators are completely free.