Name: Equity Multiplier

Definition: The equity multiplier shows how much total assets the company controls for every dollar invested by shareholders. It reflects how much debt is being used to stretch owners’ equity. A higher multiplier means greater use of debt to amplify returns — but also amplifies risk if things go wrong. Lower multipliers suggest a safer, more self-funded business.

Interpretation:
• In '2021', ASTE's equity multiplier was 1.39, representing the level of financial leverage utilized. Industry average for Construction/Ag Equipment/Trucks in '2021' stood at 2.94.
• In '2022', ASTE's equity multiplier was 1.62, representing the level of financial leverage utilized. The increase compared to '2021' may signal growing financial pressure. Industry average for Construction/Ag Equipment/Trucks in '2022' stood at 3.16. Industry average increased by 0.21 compared to previous year.
• In '2023', ASTE's equity multiplier was 1.62, representing the level of financial leverage utilized. The increase compared to '2022' may signal growing financial pressure. Industry average for Construction/Ag Equipment/Trucks in '2023' stood at 2.74. Industry average declined by 0.42 from previous year.
• In '2024', ASTE's equity multiplier was 1.64, representing the level of financial leverage utilized. The increase compared to '2023' may signal growing financial pressure. Industry average for Construction/Ag Equipment/Trucks in '2024' stood at 3.34. Industry average increased by 0.61 compared to previous year.
Overall, ASTE's equity multiplier has steadily improved over the past 4 years.

Formula: Equity Multiplier = Total Assets / Shareholders' Equity

Good Range: Usually ranges from 1.5 to 3 depending on industry.