The assets-to-equity ratio is also known as what?

The assets-to-equity ratio is known as the equity multiplier because it measures the proportion of total assets that are financed by shareholders' equity. Specifically, this ratio is calculated by dividing total assets by total shareholders' equity, illustrating how much assets are being funded by equity versus liabilities.

A higher equity multiplier indicates that a company is using more debt in relation to its equity, which can signify greater financial leverage. Conversely, a lower equity multiplier would suggest that the company is relying more on equity for its financing needs. Understanding this ratio is crucial for assessing a company's capital structure and the level of risk associated with its financing.

The other terms listed, such as debt ratio, total asset turnover, and fixed asset ratio, pertain to different financial metrics and do not reflect the same concept as the equity multiplier. The debt ratio focuses on the proportion of debt relative to total assets, total asset turnover measures the efficiency of asset use in generating sales, and the fixed asset ratio looks specifically at the relationship between fixed assets and total assets. Each of these serves distinct purposes in financial analysis.