Additionally, a low equity multiplier is not always a positive indicator for a company. In some cases, it could mean the company is unable to find lenders willing to loan it money.

A multiplier of 0.5x, on the other hand, would actually reduce the base figure by half. Many different multipliers exist in finance and economics. The Fiscal Multiplier ...

Equity multiplier measures asset financing by comparing total assets to shareholders' equity. High equity multipliers indicate more debt, impacting the risk and return on equity (ROE). DuPont ...

The Keynesian multiplier was introduced in the 1930s to show that government spending creates cycles of increased employment and prosperity.

Fact checked by Timothy Li Reviewed by Michael J Boyle In general, investors look for companies with a low equity multiplier because this indicates the company is using more equity and less debt ...