The equity multiplier = debt to equity +1. Therefore, if the debt to equity ratio is 1.40, the equity multiplier is 2.40.
an equity multiplier of 2 means that the firm finances it asset with 50% of debt instruments. thus, for every $ of investments in assets, the firm matches it with an equivalent composition of debt.
What is given is: sales / total assets = 2.23 ROA = 9.69% ROE = 16.4% Find: profit margin Debt ratio ROA = Net income / total assets = (Net income/ net sales) x (net sales /total assets)) Net income / net sales = ROA / (net sales / total assets) = 0.969 / 2.23 = 0.0435 Net profit margin = net income / net sales = 0.0435 = 4.35 % ROE = net income / total equity = (net income/net sales) x (net sales/ total assets) X (total assets / total equity) Total assets / total equity = ROE / ((net income/net sales) x (net sales/ total assets)) = 0.164 / (0.0435 x 2.23) = 0.164 / 0.097 = 1.69 Equity multiplier = total assets / total equity Equity multiplier = ROE / ROA = 0.164 / 0.0969 = 1.69 Equity multiplier = 1 + debt-to-equity ratio Debto-to-equity ratio = equity multiplier - 1 = 1.69 - 1 = 0.69 Total debt ratio = debt-to-equity ratio / (1+debt-to-equity ratio) = 0.69 / (1+ 0.69) = 0.41
the best assets of business is goodwill in market
The leverage multiplier equals to total asset dividing by shareholders' equity. The high leverage multiplier indicates that the firms decide to overcome the high levels of borrowing or debt on which it must pay interest. The higher ratio means higher liability than its shareholders' equity. Essentially, the ratio is mainly used to help firms making decision about how to raise funds by undertaking debts. A company will only undertake significant amounts of debt when it believes that return on assets (ROA) will be higher than the interest on the loan.
Net tangible assets are calculated as the total assets of a company minus any intangible assets. Intangible assets are goodwill, patents and trademarks.
Company's Total Assets Turnover Ratio is 5 and Equity multiplier is 1.5 times which is cal. as Net Sales/Total Assets and Total Assets/ Shareholder's equity resp. for the two ratios.
EQUITY MULTIPLIER=Total Assets / Total Stockholders' Equity
the return on equity divided by the return on assets
The definition of "equity multiplier" is the measure of financial leverage and shows a company's total assets per dollar of stakeholder's equity. It is calculated as: Total Assets divided by Total Stockholder's Equity.
Personal assets is assets that are owned by a person. Company assets are assets that are own by the company.
ROE= profit margin × total assets turnover × equity multiplier ROE= ( Net income / sales ) × ( sales / total assets ) × ( total assets / common equity ) ROE= 3% × ( 100/50)×2 ROE = 3% × 4 = 12 %
What is given is: total assets = $422,235,811 Debt ratio = 29.5% Find: debt-to-equity ratio Equity multiplier Debt-to-equity ratio = total debt / total equity Total debt ratio = total debt / total assets Total debt = total debt ratio x total assets = 0.295 x 422,235,811 = 124,559,564.2 Total assets = total equity + total debt Total equity = total assets - total debt = 422,235,811 - 124,559,564.2 = 297,676,246.8 Debt-to-equity ratio = total debt / total equity = 124,559,564.2 / 297,676,246.8 = 0.4184 Equity multiplier = total assets / total equity = 422,235,811 / 297,676,246.8 = 1.418
Return on assets is Net income/ total assets. Hence to arrive at net income we should ascertain total assets first, as the return on assets is provided at 8.7%. Total assets is sum of Equity plus Debt plus Other liabilities. We have total equity at USD 520000. Hence debt can be ascertained from the Debt Equity ratio at 1.40. But what about other liabilities? As it is not provided we will not be able to compute total assets and hence net income from the given particulars.
theft of company assets.
an equity multiplier of 2 means that the firm finances it asset with 50% of debt instruments. thus, for every $ of investments in assets, the firm matches it with an equivalent composition of debt.
the company
Answer Whatever assets that you carry with you, you can contribute to the company and that should get you noticed by your peers.