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Strategic Profit Model Explained by 462- gurveen Singh is a document available to read on EtoBox.
The strategic profit model, also known as the DuPont equation, is used to calculate return on equity (ROE). ROE is calculated by multiplying net profit margin, asset turnover, and financial leverage. Net profit margin measures profitability, asset turnover measures efficiency in generating sales from assets, and leverage refers to the debt-to-equity ratio. Together these factors indicate how effectively a company generates profit relative to shareholders
- Author
- 462- gurveen Singh
- Language
- EN