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', NCEW's equity multiplier was 2.01, representing the level of financial leverage utilized. Industry average for Oil Refining/Marketing in '2021' stood at 2.26.
• In '2022', NCEW's equity multiplier was 1.97, representing the level of financial leverage utilized. The decrease since '2021' reflects improving financial health. Industry average for Oil Refining/Marketing in '2022' stood at 2.72. Industry average increased by 0.46 compared to previous year.
• In '2023', NCEW's equity multiplier was 2.64, representing the level of financial leverage utilized. The increase compared to '2022' may signal growing financial pressure. Industry average for Oil Refining/Marketing in '2023' stood at 3.06. Industry average increased by 0.34 compared to previous year.
• In '2024', NCEW's equity multiplier was 2.97, representing the level of financial leverage utilized. The increase compared to '2023' may signal growing financial pressure. Industry average for Oil Refining/Marketing in '2024' stood at 2.52. Industry average declined by 0.54 from previous year.
Overall, NCEW'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.