Financial Leverage Multiplier Formula. Generally, a high equity multiplier indicates that a company is using a high amount of debt to finance. Financial leverage (equity multiplier) is the ratio of total assets to total equity.

The leverage formula is the simplest we can find to calculate within the world of finance. The formula, in this case, would include minority interest. = $14.50 billion÷$4.14 billion=3.50 ratiosys’s liabilities are 350% of shareholders’ equity which is very high for a retail company.