Question: remember , the equation breaks down our return on equity ( ROE ) into three component ratios: the net profit margin the total assets turnover

remember

,

the equation breaks down our return on equity

(

ROE

)

into three component ratios: the net profit margin the total assets turnover ratio, and the equity multiplier And, according to my understanding of the DuPont equation and its calculation of ROE, the three ratios provide insights into the company's effectiveness in using the company's assets, andof debt versus equity control over its expenses

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