- Net margin
- 6.3 %
- Asset turnover
- 1.4286 ×
- Equity multiplier
- 3 ×
- Direct ROE
- 27 %
- Three-factor ROE
- 27 %
- Tax factor
- 0.7
- Interest factor
- 0.75
- EBIT margin
- 12 %
- Five-factor ROE
- 27 %
On this page
Use matching scope and averages
Enter period income, revenue, EBIT and EBT, with explicitly chosen average assets and equity. The tool uses the same asset base in both matching factors.
Read the reconciliation
The three-factor product is shown alongside direct ROE. When EBIT and EBT are nonzero, the five-factor chain is also shown. Zero intermediates can make that detailed chain undefined without making the direct quotient undefined.
Check the fictional defaults
Net income 189, revenue 3,000, average assets 2,100 and equity 700 give 27% direct ROE. The first three detailed margin factors give 6.3% net margin.
Keep causal and risk conclusions separate
The calculator uses positive revenue, assets and equity, and accepts negative earnings. It does not infer borrowing transactions, earnings sustainability or investment suitability from the factors.