The equity multiplier is an important indicator to measure the level of financial leverage of an enterprise. It reflects the extent to which an enterprise uses debt financing to support its asset operations. A higher equity multiplier means that the company uses more debt for financing, which increases the company's financial risk, but may also bring higher profit potential. In some markets and industries, studies have shown that high equity multipliers are associated with lower expected stock returns, which may be because the market requires a higher risk premium for highly indebted companies. However, in other cases, the leverage effect may also bring positive returns, so this factor needs to be comprehensively analyzed in combination with the industry, company specific conditions and the macroeconomic environment.