`"Equity Multiplier" = "Total Assets" /( "Stockholders Equity" )`

Enter a value for all fields

The Equity Multiplier (EM) is a financial leverage ratio that evaluates a company's use of debt to purchase assets.

EXAMPLE

ABC company has assets valued at $6 million and stockholder equity of $2 million. The equity multiplier value would be 3.0 ($6 million / $2 million), meaning that one third of a company’s assets are financed by equity.