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', ESCA's equity multiplier was 1.72, representing the level of financial leverage utilized. Industry average for Recreational Games/Products/Toys in '2021' stood at 1.84.
• In '2022', ESCA's equity multiplier was 1.89, representing the level of financial leverage utilized. The increase compared to '2021' may signal growing financial pressure. Industry average for Recreational Games/Products/Toys in '2022' stood at 2.07. Industry average increased by 0.23 compared to previous year.
• In '2023', ESCA's equity multiplier was 1.54, representing the level of financial leverage utilized. The decrease since '2022' reflects improving financial health. Industry average for Recreational Games/Products/Toys in '2023' stood at 1.15. Industry average declined by 0.92 from previous year.
• In '2024', ESCA's equity multiplier was 1.34, representing the level of financial leverage utilized. The decrease since '2023' reflects improving financial health. Industry average for Recreational Games/Products/Toys in '2024' stood at 1.41. Industry average increased by 0.27 compared to previous year.
Overall, ESCA'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.