Equity Multiplier Definition Examples How To Intepret
What is the Equity Multiplier? The equity multiplier helps us understand how much of the company’s assets are financed by the shareholders’ equity and is a simple ratio of total assets to total equity. If this ratio is higher, then it means financial leverage (total debt to equity) is higher. And if the ratio turns out to be lower, the financial leverage is lower. We note from the below graph that Go daddy has a higher multiplier at 6....