Equity multiplier
Average assets relative to average equity - the balance-sheet leverage term of the DuPont decomposition.
Formula
Average total assets ÷ average stockholders' equity (each the mean of two consecutive period-end balances)
Served as: annual · derived. Annual and quarterly observations are never mixed unlabeled.
Where the inputs come from
- Assets and StockholdersEquity at two consecutive period ends
Listed highest priority first. Every served figure carries its filing, fiscal period and accession; open any value on the financials page to see them.
How to compare it honestly
Read alongside debt/equity and interest coverage; a rising multiplier is leverage, not operating improvement.
When it is not served
N/M when average equity is zero or negative, and not computed where the adjacent prior-year balance is untagged.
Missing data is missing evidence: it is never shown as zero and never treated as a conclusion.
What it cannot tell you
Counts all liabilities as leverage, including operating items like payables that carry no interest.
Questions worth asking next
- How much of the ROE trend does this term explain versus margin and turnover?
- Has the multiplier risen from buybacks shrinking equity or from added debt?
Research prompts, not recommendations.
See it computed from filings
Related in returns: ROE · ROA · ROIC · ROCE · ROE (DuPont) · Asset turnover · Tax burden · Interest burden
Definitions are descriptive and educational. Nothing here is a guaranteed signal or personalized investment advice. How the platform computes and cites every figure.