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', CNH's equity multiplier was 7.29, representing the level of financial leverage utilized. Industry average for Construction/Ag Equipment/Trucks in '2021' stood at 2.94.
• In '2022', CNH's equity multiplier was 5.69, representing the level of financial leverage utilized. The decrease since '2021' reflects improving financial health. 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', CNH's equity multiplier was 5.76, 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', CNH's equity multiplier was 5.61, representing the level of financial leverage utilized. The decrease since '2023' reflects improving financial health. Industry average for Construction/Ag Equipment/Trucks in '2024' stood at 3.34. Industry average increased by 0.61 compared to previous year.
Overall, CNH's equity multiplier has consistently declined during the past 4 years.

Formula: Equity Multiplier = Total Assets / Shareholders' Equity

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