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What is considered a high equity multiplier? If a company has a total asset turnover of 0.43, equity multiplier of 3.13, and a profit margin
What is considered a high equity multiplier? If a company has a total asset turnover of 0.43, equity multiplier of 3.13, and a profit margin of 15%, and if I do complete DuPont analysis I get a ROE of about 20%. I can see that the total asset is low, but is the equity multiplier too high? I can't seem to find information on what it should be in relation to the other factors. Thanks!
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