How do you calculate equity multiplier from debt/equity ratio?

The equity multiplier formula is calculated as follows: Equity Multiplier = Total Assets / Total Shareholder’s Equity. Total Capital = Total Debt + Total Equity. Debt Ratio = Total Debt / Total Assets. Debt Ratio = 1 – (1/Equity Multiplier) ROE = Net Profit Margin x Total Assets Turnover Ratio x Financial Leverage Ratio. Click to see full answer. Also, what is the formula for equity multiplier?Equity Multiplier. The formula for equity multiplier is total assets divided by stockholder’s equity. Equity multiplier is a financial leverage ratio that evaluates a company’s use of debt to purchase assets.Furthermore, how do you calculate total debt to equity ratio? The debt-equity ratio is computed by dividing a firm’s total debt by its shareholders’ equity, which represents what shareholders would get after debts were paid off if the firm were liquidated. The total debt ratio is computed by dividing total liabilities by total assets. Additionally, what does equity multiplier ratio mean? The equity multiplier is a financial leverage ratio that measures the amount of a firm’s assets that are financed by its shareholders by comparing total assets with total shareholder’s equity. In other words, the equity multiplier shows the percentage of assets that are financed or owed by the shareholders.How do you determine equity?Total equity is the value left in the company after subtracting total liabilities from total assets. The formula to calculate total equity is Equity = Assets – Liabilities. If the resulting number is negative, there is no equity and the company is in the red.