How to find equity multiplier formula?

Equity Multiplier Formula. The equity multiplier formula is calculated as follows: Equity Multiplier = Total Assets / Total Shareholder’s Equity. The values for the total assets and the shareholder’s equity are available on the balance sheet and can be calculated by anyone with access to the company’s annual financial reports.

How to calculate equity multiple?

How to calculate equity multiple. Equity multiple is a metric that calculates the expected or achieved total return on an initial investment. It’s calculated through an equity multiple formula that divides the total dollars received by the total dollars invested. Equity Multiple = Total Distributions / Total Invested Capital

What does equity multiplier mean?

The equity multiplier is the ratio of a company's total assets to its stockholders' equity. The ratio is intended to measure the extent to which equity is used to pay for all types of company assets.