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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 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)

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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