Total assets ÷ shareholders' equity. How much leverage inflates the assets.
What this ratio is
Equity Multiplier (Equity Multiplier): total assets ÷ shareholders' equity, showing how much leverage inflates the assets.
How to read it
How many times the shareholders' money is multiplied into assets. It raises Return on Equity and raises risk with it.
Common mistake
A high return on equity with a high multiplier is leverage, not efficiency.
Where to see it on the platform
The fundamentals comparison page shows it for each company against the market median, in the "leverage indicators" family, with five years of history and a 12-month window.
Questions about the equity multiplier
What does the equity multiplier mean?
Total assets ÷ shareholders' equity. How much leverage inflates the assets.
How does the equity multiplier appear on a trading platform?
It appears as "cmp:equity_multiplier" (full term: Equity Multiplier), which is what you see in the options chain or on the order screen.
