ROE = (net profit margin) x (total asset turnover) x (equity multiplier). What is the advantage of using this expanded version of the ROE formula versus using the simplified version which is net income divided by total equity?

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The Answer of ROE = (net profit margin) x (total asset turnover) x (equity multiplier). What is the advantage of using this expanded version of the ROE formula versus using the simplified version which is net income divided by total equity?

ROE = (Net Profit Margin) X (Total Asset Turnover) X