LCM calculator

Return on Equity given Operating Profit Calculator

Financial Chemistry Engineering Health More >>

↳

Business Banking Common Probability Distribution Cost Accounting More >>

⤿

Return on Equity (DuPont Model) Important Formulas of Business Business Metrics Financial Ratios More >>

✖The Operating Profit Margin is a margin ratio used to measure a company's pricing strategy and operating efficiency.ⓘ Operating Profit Margin [OPM]			+10% -10%
✖Asset Turnover is a financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue or sales income to the company.ⓘ Asset Turnover [ATO]			+10% -10%
✖Interest Expense Rate is the rate of the non-operating expense shown on the income statement.ⓘ Interest Expense Rate [IER]			+10% -10%
✖The Equity Multiplier is a financial leverage ratio that measures the amount of a firm's assets that are financed by its shareholders by comparing total assets with total shareholder's equity.ⓘ Equity Multiplier [EM]			+10% -10%
✖Tax Retention is the mandatory tax placed on income that is earned on investments in a country that is not the resident's home country.ⓘ Tax Retention [TR]			+10% -10%

✖Return on Equity (ROE) is a measure of profitability that calculates how many dollars of profit a company generates with each dollar of shareholders' equity.ⓘ Return on Equity given Operating Profit [ROE]

⎘ Copy

👎

Formula

LaTeX

Reset

👍

Download Business Formula PDF PDF Image

Return on Equity given Operating Profit Solution

STEP 0: Pre-Calculation Summary

Formula Used

Return on Equity = (Operating Profit Margin*Asset Turnover)-(Interest Expense Rate*Equity Multiplier*Tax Retention)
ROE = (OPM*ATO)-(IER*EM*TR)
This formula uses 6 Variables

Variables Used

Return on Equity - Return on Equity (ROE) is a measure of profitability that calculates how many dollars of profit a company generates with each dollar of shareholders' equity.
Operating Profit Margin - The Operating Profit Margin is a margin ratio used to measure a company's pricing strategy and operating efficiency.
Asset Turnover - Asset Turnover is a financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue or sales income to the company.
Interest Expense Rate - Interest Expense Rate is the rate of the non-operating expense shown on the income statement.
Equity Multiplier - The Equity Multiplier is a financial leverage ratio that measures the amount of a firm's assets that are financed by its shareholders by comparing total assets with total shareholder's equity.
Tax Retention - Tax Retention is the mandatory tax placed on income that is earned on investments in a country that is not the resident's home country.

STEP 1: Convert Input(s) to Base Unit

Operating Profit Margin: 15 --> No Conversion Required
Asset Turnover: 6 --> No Conversion Required
Interest Expense Rate: 5 --> No Conversion Required
Equity Multiplier: 2 --> No Conversion Required
Tax Retention: 7 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

ROE = (OPM*ATO)-(IER*EM*TR) --> (15*6)-(5*2*7)

Evaluating ... ...

ROE = 20

STEP 3: Convert Result to Output's Unit

20 --> No Conversion Required

FINAL ANSWER

20 <-- Return on Equity

(Calculation completed in 00.004 seconds)

You are here -

Home » Financial » Business » Return on Equity (DuPont Model) » Return on Equity given Operating Profit

Credits

Created by Team Softusvista

Softusvista Office (Pune), India

Team Softusvista has created this Calculator and 600+ more calculators!

Verified by Himanshi Sharma

Bhilai Institute of Technology (BIT), Raipur

Himanshi Sharma has verified this Calculator and 800+ more calculators!

< Return on Equity (DuPont Model) Calculators

Return on Equity given Operating Profit

LaTeX Go Return on Equity = (Operating Profit Margin*Asset Turnover)-(Interest Expense Rate*Equity Multiplier*Tax Retention)

Return on Equity given Net Income

LaTeX Go Return on Equity = Net Income/Total Equity

Return on Equity given Operating Profit Formula

LaTeX Go

Return on Equity = (Operating Profit Margin*Asset Turnover)-(Interest Expense Rate*Equity Multiplier*Tax Retention)
ROE = (OPM*ATO)-(IER*EM*TR)

How to Calculate Return on Equity given Operating Profit?

Return on Equity given Operating Profit calculator uses Return on Equity = (Operating Profit Margin*Asset Turnover)-(Interest Expense Rate*Equity Multiplier*Tax Retention) to calculate the Return on Equity, Return on Equity given Operating Profit can be defined as a measure of profitability that calculates how many dollars of profit a company generates with each dollar of shareholders' equity when operating profit is given. Return on Equity is denoted by ROE symbol.

How to calculate Return on Equity given Operating Profit using this online calculator? To use this online calculator for Return on Equity given Operating Profit, enter Operating Profit Margin (OPM), Asset Turnover (ATO), Interest Expense Rate (IER), Equity Multiplier (EM) & Tax Retention (TR) and hit the calculate button. Here is how the Return on Equity given Operating Profit calculation can be explained with given input values -> 20 = (15*6)-(5*2*7).

FAQ

What is Return on Equity given Operating Profit?

Return on Equity given Operating Profit can be defined as a measure of profitability that calculates how many dollars of profit a company generates with each dollar of shareholders' equity when operating profit is given and is represented as ROE = (OPM*ATO)-(IER*EM*TR) or Return on Equity = (Operating Profit Margin*Asset Turnover)-(Interest Expense Rate*Equity Multiplier*Tax Retention). The Operating Profit Margin is a margin ratio used to measure a company's pricing strategy and operating efficiency, Asset Turnover is a financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue or sales income to the company, Interest Expense Rate is the rate of the non-operating expense shown on the income statement, The Equity Multiplier is a financial leverage ratio that measures the amount of a firm's assets that are financed by its shareholders by comparing total assets with total shareholder's equity & Tax Retention is the mandatory tax placed on income that is earned on investments in a country that is not the resident's home country.

How to calculate Return on Equity given Operating Profit?

Return on Equity given Operating Profit can be defined as a measure of profitability that calculates how many dollars of profit a company generates with each dollar of shareholders' equity when operating profit is given is calculated using Return on Equity = (Operating Profit Margin*Asset Turnover)-(Interest Expense Rate*Equity Multiplier*Tax Retention). To calculate Return on Equity given Operating Profit, you need Operating Profit Margin (OPM), Asset Turnover (ATO), Interest Expense Rate (IER), Equity Multiplier (EM) & Tax Retention (TR). With our tool, you need to enter the respective value for Operating Profit Margin, Asset Turnover, Interest Expense Rate, Equity Multiplier & Tax Retention and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

How many ways are there to calculate Return on Equity?

In this formula, Return on Equity uses Operating Profit Margin, Asset Turnover, Interest Expense Rate, Equity Multiplier & Tax Retention. We can use 1 other way(s) to calculate the same, which is/are as follows -

Return on Equity = Net Income/Total Equity

Home

FREE PDFs

🔍 Search