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', EAF's equity multiplier was 60.35, representing the level of financial leverage utilized. Industry average for Industrial Machinery/Components in '2021' stood at 1.67.
• In '2022', EAF's equity multiplier was 4.75, representing the level of financial leverage utilized. The decrease since '2021' reflects improving financial health. Industry average for Industrial Machinery/Components in '2022' stood at 1.98. Industry average increased by 0.31 compared to previous year.
• In '2023', EAF's equity multiplier was 16.47, representing the level of financial leverage utilized. The increase compared to '2022' may signal growing financial pressure. Industry average for Industrial Machinery/Components in '2023' stood at 1.88. Industry average declined by 0.10 from previous year.
• In '2024', EAF's equity multiplier was -15.52, representing the level of financial leverage utilized. The decrease since '2023' reflects improving financial health. Industry average for Industrial Machinery/Components in '2024' stood at 1.90. Industry average increased by 0.01 compared to previous year.
Overall, EAF's equity multiplier has been volatile but showed a downward 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.