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 '2022', LOW's equity multiplier was -9.27, representing the level of financial leverage utilized. Industry average for RETAIL: Building Materials in '2022' stood at 1.40.
• In '2023', LOW's equity multiplier was -3.07, representing the level of financial leverage utilized. The increase compared to '2022' may signal growing financial pressure. Industry average for RETAIL: Building Materials in '2023' stood at 1.73. Industry average increased by 0.33 compared to previous year.
• In '2024', LOW's equity multiplier was -2.78, representing the level of financial leverage utilized. The increase compared to '2023' may signal growing financial pressure. Industry average for RETAIL: Building Materials in '2024' stood at 1.82. Industry average increased by 0.09 compared to previous year.
• In '2025', LOW's equity multiplier was -3.03, representing the level of financial leverage utilized. The decrease since '2024' reflects improving financial health. Industry average for RETAIL: Building Materials in '2025' stood at -3.03. Industry average declined by 4.85 from previous year.
Overall, LOW'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.