How to Calculate Return on Equity when Operating Profit is given?
Return on Equity when Operating Profit is given 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 (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 and is denoted by ROE symbol.
How to calculate Return on Equity when Operating Profit is given using this online calculator? To use this online calculator for Return on Equity when Operating Profit is given, enter Operating Profit Margin (OPM), Asset Turnover (ATO), Interest Expense Rate (IER), Equity Multiplier (EM) and Tax Retention (TR) and hit the calculate button. Here is how the Return on Equity when Operating Profit is given calculation can be explained with given input values -> 25 = (15*5)-(5*2*5).