Cno Financial(Cno) 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 CNO 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 '2021', CNO's equity multiplier was 6.88, representing the level of financial leverage utilized. Industry average for Accident &Health Insurance in '2021' stood at 5.92.
• In '2022', CNO's equity multiplier was 18.73, representing the level of financial leverage utilized. The increase compared to '2021' may signal growing financial pressure. Industry average for Accident &Health Insurance in '2022' stood at 6.77. Industry average increased by 0.85 compared to previous year.
• In '2023', CNO's equity multiplier was 15.81, representing the level of financial leverage utilized. The decrease since '2022' reflects improving financial health. Industry average for Accident &Health Insurance in '2023' stood at 6.16. Industry average declined by 0.61 from previous year.
• In '2024', CNO's equity multiplier was 15.15, representing the level of financial leverage utilized. The decrease since '2023' reflects improving financial health. Industry average for Accident &Health Insurance in '2024' stood at 5.08. Industry average declined by 1.08 from previous year.
Overall, CNO's equity multiplier has been volatile but showed an upward trend over the past 4 years.
Formula: Equity Multiplier = Total Assets / Shareholders' Equity
Good Range: Usually ranges from 1.5 to 3 depending on industry.