Debt ratio = 1- ( 1 / Equity multiplier ) Voila! This article is part of The Motley Fool's Knowledge Center, which was created based on the collected wisdom of a fantastic community of investors.

A leverage ratio measures the level of debt being used by a business. There are several different types of leverage ratios, including equity multiplier, debt-to-equity (D/E) ratio, and degree of ...

Equity multiplier ratio: This tells us how much liability a company uses to finance its assets, and what portion of ROE is driven by liability.

The equity multiplier increased due to a decrease in retained earnings. Apple's high return on equity is due to a high profit margin, a great asset turnover ratio, and a decent equity multiplier ...

Delving a little deeper into what is driving Advance's Return on Equity. Way back in the 1920s, DuPont gave us a useful way to measure a company's performance. The DuPont analysis was used to ...

Boeing's equity multiplier is much higher than the peer group average, which has a median value of 3.9. However, Airbus and Lockheed Martin, the closest comparisons to Boeing, have equity ...

The DuPont identity is an expression that breaks return on equity (ROE) down into three parts: profit margin, total asset turnover, and financial leverage.

It is a financial ratio that calculates the amount of net profit earned as a percentage of shareholder equity. It exhibits how efficiently a company has used shareholders’ money. In fact, RoE is ...