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    Return on Equity can be calculated by multiplying Net Profit Margin, Total Asset Turnover, and the Equity Multiplier. Specifically, Return on Equity equals Net Income divided by Equity, which can also be expressed as Net Income divided by Sales multiplied by Sales divided by Total Assets multiplied by Total Assets divided by Equity.

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    Return on Equity can be calculated by multiplying Net Profit Margin, Total Asset Turnover, and the Equity Multiplier. Specifically, Return on Equity equals Net Income divided by Equity, which can also be expressed as Net Income divided by Sales multiplied by Sales divided by Total Assets multiplied by Total Assets divided by Equity.

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    Finance Notes

    Uploaded by

    zielonkoq5592
    Return on Equity can be calculated by multiplying Net Profit Margin, Total Asset Turnover, and the Equity Multiplier. Specifically, Return on Equity equals Net Income divided by Equity, which can also be expressed as Net Income divided by Sales multiplied by Sales divided by Total Assets multiplied by Total Assets divided by Equity.

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    Finance Notes

    Return on Equity = NI/Equity = NI/Sales * Sales/TA * TA/Equity = NI/EBT * EBT/EBIT *


    EBIT/Sales * Sales/TA * TA/Equity

    Net Profit Margin * T.A.T. * Equity Multiplier

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