Equity Multiplier Calculator

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✖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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Credits

Team Softusvista

Softusvista Office (Pune), India

Team Softusvista has created this Calculator and 500+ more calculators!

Himanshi Sharma

Bhilai Institute of Technology (BIT), Raipur

Himanshi Sharma has verified this Calculator and 500+ more calculators!

Equity Multiplier Solution

STEP 0: Pre-Calculation Summary

Formula Used

equity_multiplier = Total Assets/Total Shareholders' Equity
EM = TA/TSE
This formula uses 2 Variables

Variables Used

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 <-- Equity Multiplier

(Calculation completed in 00.016 seconds)

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< 7 Other formulas that you can solve using the same Inputs

Return on capital employed

return_on_capital_employed = (Earnings Before Interest and Taxes/(Total Assets-Current Liabilities))*100 Go

Debt to Equity Ratio

debt_to_equity = Total Liabilities/Total Shareholders' Equity*100 Go

Shareholders' Equity when Total Assets and Liabilities are given

total_shareholders_equity = Total Assets-Total Liabilities Go

Debt to Assets Ratio

debt_to_assets_ratio = Total Liabilities/Total Assets Go

Solvency Ratio

solvency_ratio = (Shareholders Fund*100)/Total Assets Go

Total Asset Turnover

total_asset_turnover = Sales/Total Assets Go

Debt Ratio

debt_ratio = Total Debt/Total Assets Go

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 and 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) and 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 and 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) and Total Shareholders' Equity (TSE). With our tool, you need to enter the respective value for Total Assets and 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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