Bowhead Specialty(Bow) Financials: Equity Multiplier Compared To Industry Average, Plus Other Key Ratios
Solvency Trend (Last 5 Years)
Solvency - equity multiplier
This chart shows the historical trend of equity multiplier for BOW compared to its industry average over the recent years.
Ratio Definition and Interpretation
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 '2022', BOW's equity multiplier was 6.78, representing the level of financial leverage utilized. Industry average for Property-Casualty Insurers in '2022' stood at 4.11.
• In '2023', BOW's equity multiplier was 5.35, representing the level of financial leverage utilized. The decrease since '2022' reflects improving financial health. Industry average for Property-Casualty Insurers in '2023' stood at 4.31. Industry average increased by 0.21 compared to previous year.
• In '2024', BOW's equity multiplier was 4.47, representing the level of financial leverage utilized. The decrease since '2023' reflects improving financial health. Industry average for Property-Casualty Insurers in '2024' stood at 4.17. Industry average declined by 0.15 from previous year.
Overall, BOW's equity multiplier has been volatile but showed a downward trend over the past 3 years.
Formula: Equity Multiplier = Total Assets / Shareholders' Equity
Good Range: Usually ranges from 1.5 to 3 depending on industry.