Profit margin multiply assets turnover multiply equity multiplier is used to calculate

return on turnover
return on stock
return on assets
return on equity

The correct answer is D. return on equity.

Return on equity (ROE) is a measure of a company’s profitability. It is calculated by dividing net income by shareholders’ equity. ROE is a good measure of how well a company is using its equity to generate profits.

Profit margin is a measure of how much profit a company makes on each dollar of sales. It is calculated by dividing net income by revenue. Profit margin is a good measure of a company’s pricing power and efficiency.

Assets turnover is a measure of how efficiently a company uses its assets to generate sales. It is calculated by dividing revenue by average total assets. Assets turnover is a good measure of a company’s asset management efficiency.

Equity multiplier is a measure of how much debt a company uses to finance its assets. It is calculated by dividing total assets by shareholders’ equity. Equity multiplier is a good measure of a company’s financial risk.

The formula for ROE is:

ROE = Net income / Shareholders’ equity

The formula for profit margin is:

Profit margin = Net income / Revenue

The formula for assets turnover is:

Assets turnover = Revenue / Average total assets

The formula for equity multiplier is:

Equity multiplier = Total assets / Shareholders’ equity

Therefore, profit margin multiplied by assets turnover multiplied by equity multiplier is used to calculate return on equity.

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