✖Total Assets are the final amount of all gross investments, cash and equivalents, receivables, and other assets as they are presented on the balance sheet.ⓘ Total Assets [TA]			+10% -10%
✖Total Shareholders' Equity is equal to a firm's total assets minus its total liabilities and is one of the most common metrics used by analysts to determine the financial health of a company.ⓘ Total Shareholders' Equity [TSE]			+10% -10%

✖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.ⓘ Equity Multiplier [EM]

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Formula

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Equity Multiplier

Formula

`"EM" = "TA"/"TSE"`

Example

`"833.3333"="100000"/"120"`

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Equity Multiplier Solution

STEP 0: Pre-Calculation Summary

Formula Used

Equity Multiplier = Total Assets/Total Shareholders' Equity
EM = TA/TSE
This formula uses 3 Variables

Variables Used

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.
Total Assets - Total Assets are the final amount of all gross investments, cash and equivalents, receivables, and other assets as they are presented on the balance sheet.
Total Shareholders' Equity - Total Shareholders' Equity is equal to a firm's total assets minus its total liabilities and is one of the most common metrics used by analysts to determine the financial health of a company.

STEP 1: Convert Input(s) to Base Unit

Total Assets: 100000 --> No Conversion Required
Total Shareholders' Equity: 120 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

EM = TA/TSE --> 100000/120

Evaluating ... ...

EM = 833.333333333333

STEP 3: Convert Result to Output's Unit

833.333333333333 --> No Conversion Required

FINAL ANSWER

833.333333333333 ≈ 833.3333 <-- Equity Multiplier

(Calculation completed in 00.004 seconds)

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< 22 Important Formulas of Financial Ratios Calculators

Fixed Charge Coverage Ratio

Go Fixed Charge Coverage Ratio = (Earnings Before Interest and Taxes+Fixed Charges Before Taxes)/(Fixed Charges Before Taxes+Interest)

Free Cash Flow to Firm

Go Free Cash Flow to Firm (FCFF) = Cash Flow from Operations+(Interest Expense*(1-Tax Rate))-Net Capital Expenditures

Economic Value Added

Go Economic Value Added = Net Operating Profit After Tax-Weighted Average Cost of Capital*Total Invested Capital

Average Collection Period

Go Average Collection Period = Accounts Receivable/(Sales for Reporting Period/Reporting Period Length)

Revenue Growth Rate

Go Revenue Growth Rate = ((Current Period Revenue-Previous Period Revenue)/Previous Period Revenue)*100

Sales Growth Rate

Go Sales Growth Rate = ((Current Period Sales-Previous Period Sales)/Previous Period Sales)*100

Business Quick Ratio

Go Quick Ratio = (Current Assets-Inventory of Liquidity Ratio)/Current Liabilities

Quick Ratio

Go Quick Ratio = (Current Assets-Inventory of Liquidity Ratio)/Current Liabilities

Interest Coverage Ratio

Go Interest Coverage Ratio = Earnings Before Interest and Taxes/Interest Expense

Debt to Equity Ratio

Go Debt to Equity (D/E) = Total Liabilities/Total Shareholders' Equity*100

Market Capitalization

Go Market Capitalization = Current Share Price*Total Shares Outstanding

Receivables Turnover Ratio

Go Receivables Turnover Ratio = Net Sales/Average Accounts Receivables

Free Cash Flow

Go Free Cash Flow = Cash Flow from Operations-Net Capital Expenditures

Fixed Asset Turnover Ratio

Go Fixed Asset Turnover Ratio = Net Sales/Average Net Fixed Assets

Equity Multiplier

Go Equity Multiplier = Total Assets/Total Shareholders' Equity

Inventory Turnover Ratio

Go Inventory Turnover Ratio = Cost of Goods Sold/Inventory

Sales to Receivables Ratio

Go Sales to Receivables Ratio = Net Sales/Net Receivables

Debt to Assets Ratio

Go Debt to Assets Ratio = Total Liabilities/Total Assets

Business Current Ratio

Go Current Ratio = Current Assets/Current Liabilities

Current Ratio

Go Current Ratio = Current Assets/Current Liabilities

Cash Flow to Sales

Go Cash Flow to Sales = Operating Cash Flow/Sales

Total Asset Turnover

Go Total Asset Turnover = Sales/Total Assets

Equity Multiplier Formula

Equity Multiplier = Total Assets/Total Shareholders' Equity
EM = TA/TSE

How to Calculate Equity Multiplier?

Equity Multiplier calculator uses Equity Multiplier = Total Assets/Total Shareholders' Equity to calculate 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. Equity Multiplier is denoted by EM symbol.

How to calculate Equity Multiplier using this online calculator? To use this online calculator for Equity Multiplier, enter Total Assets (TA) & Total Shareholders' Equity (TSE) and hit the calculate button. Here is how the Equity Multiplier calculation can be explained with given input values -> 833.3333 = 100000/120.

FAQ

What is 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 and is represented as EM = TA/TSE or Equity Multiplier = Total Assets/Total Shareholders' Equity. Total Assets are the final amount of all gross investments, cash and equivalents, receivables, and other assets as they are presented on the balance sheet & Total Shareholders' Equity is equal to a firm's total assets minus its total liabilities and is one of the most common metrics used by analysts to determine the financial health of a company.

How to calculate 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 is calculated using Equity Multiplier = Total Assets/Total Shareholders' Equity. To calculate Equity Multiplier, you need Total Assets (TA) & Total Shareholders' Equity (TSE). With our tool, you need to enter the respective value for Total Assets & Total Shareholders' Equity and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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