Sim Acquisition I Unit(Simau) 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 SIMAU 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 '2024', SIMAU's equity multiplier was 1.05, representing the level of financial leverage utilized. Industry average for Blank Checks in '2024' stood at 0.39.
Overall, SIMAU's equity multiplier has remained generally stable over the past 1 years.
Formula: Equity Multiplier = Total Assets / Shareholders' Equity
Good Range: Usually ranges from 1.5 to 3 depending on industry.