ROE¶

Return on Equity = Net Profit Margin * Total Asset turnover * Equity Multiplier NEW

Example of Apple （2020Data)

Income Statement & Balance Sheet: 9/29/2020
ROA= Net Income/ Total assets = 57.41B/323.89B = 17.73%
ROE= Net Income/ Equity = 57.41B/65.34B = 87.86%
Net profit margin = Net income / Sales = 57.41B / 274.52B = 20.91%
Total asset turnover = Sales / Total assets = 274.52B / 323.89B = 0.85
Equity multiplier = Total Assets / Equity = 323.89B / 65.34B = 4.96
The company’s internal growth rate? ROA/(1-ROA): 17.73%/82.27% =21.55%