Equity Multiplier (EM) is calculated by Dividing Total Assets bt the Total Equity of the Firm.

This Ratio is called EM, Because:

		There is no Reason to call it Equity Multiplier (EM) - It just shows the Total Assets in $ are so many times the Total Amount of Equity in $ (TE) of the Firm.
		When we Multiply by the Total Asset Turnover (TATO of the Firm, we get Return on Equity (ROE)
		When we Multiply by the Profit Margin (PM) of the Firm, we get Return on Equity (ROE)
		When we Multiply by the Return on Assets (ROA) of the Firm. we get Return on Equity (ROE)
		When we Multiply by the Gross Margin (GM) of the Firm, we get Return on Equity (ROE)