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ROE
Net Income/Equity, Measure the profitability of a company based on its use of equity
ROA
Net income/Assets, Measure profitability of a company based on its use of aseets
Duponts Model
Profit Margin x Asset Turnover x Financial Leverage
Profit Margin
Net income/Revenue, profit company earns from each dollar sale
Asset Turnover
Revenue/Assets, measures the efficiency of how profitable assets are in generating sales
Financial Leverage
Assets/Equity, measures how much a company relies on debt and other liabilities compared to equity to finance its assets