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Stock Terms
Stock Terms
Net Profit Margin = Net Income/Revenue (or) (Net Income + Minority Interest + Tax Adjusted Interest) /Revenue Asset Turnover Ratio (Inversely Proportional to Net Profit Margin) = Revenue/Assets Equity Multiplier = Assets/Shareholders Equity Return on Equity (Du pont model) = Net Profit Margin * Asset Turnover Ratio * Equity Multiplier