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.

Debt-to-Capitalization Ratio; 1. Equity Multiplier Formula & Example. The equity multiplier is a risk indicator used to measure how much of a company's operations are financed by stock, rather ...

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. Thus, a company could assume more debt to increase ...

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 ...