Coreweave(Crwv) 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 CRWV 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 '2023', CRWV's equity multiplier was -8.34, representing the level of financial leverage utilized. Industry average for Computer Software: Prepackaged Software in '2023' stood at 1.74.
• In '2024', CRWV's equity multiplier was -43.12, representing the level of financial leverage utilized. The decrease since '2023' reflects improving financial health. Industry average for Computer Software: Prepackaged Software in '2024' stood at 1.75. Industry average increased by 0.01 compared to previous year.
Overall, CRWV's equity multiplier has been volatile but showed a downward trend over the past 2 years.
Formula: Equity Multiplier = Total Assets / Shareholders' Equity
Good Range: Usually ranges from 1.5 to 3 depending on industry.