The equity multiplier, as a measure of a company's financial leverage, reflects the extent to which a company uses debt financing. A higher equity multiplier indicates that the company uses more debt to support its asset operations, which may lead to higher earnings potential, but also comes with higher financial risk. It should be noted that an equity multiplier that is too high may make a company more vulnerable to financial distress, so it is necessary to comprehensively consider the company's industry, profitability, cash flow status and other risk factors for evaluation. This indicator is often used in financial statement analysis and value investment strategies to identify companies with potentially high risks or high returns. It should be noted that the absolute height of the equity multiplier needs to be considered in combination with industry characteristics.