Marine Petroleum Of Beneficial(Marps) 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 MARPS 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', MARPS's equity multiplier was 1.00, representing the level of financial leverage utilized. Industry average for Oil & Gas Production in '2021' stood at 2.26.
• In '2022', MARPS's equity multiplier was 1.00, representing the level of financial leverage utilized. The figure remained stable compared to '2021'. Industry average for Oil & Gas Production in '2022' stood at 2.32. Industry average increased by 0.06 compared to previous year.
• In '2023', MARPS's equity multiplier was 1.00, representing the level of financial leverage utilized. The figure remained stable compared to '2022'. Industry average for Oil & Gas Production in '2023' stood at 1.96. Industry average declined by 0.36 from previous year.
• In '2024', MARPS's equity multiplier was 1.00, representing the level of financial leverage utilized. The figure remained stable compared to '2023'. Industry average for Oil & Gas Production in '2024' stood at 1.86. Industry average declined by 0.10 from previous year.
Overall, MARPS's equity multiplier has remained generally stable over the past 4 years.
Formula: Equity Multiplier = Total Assets / Shareholders' Equity
Good Range: Usually ranges from 1.5 to 3 depending on industry.