Financial Calculators
Nine professional tools wired to the concepts in the guides. Change an input, watch the decision change.
From the statements
Why decompose?Two firms can post identical ROE — one through excellent margins, the other through a tower of debt. The decomposition exposes which engine is doing the work, and whether that engine is durable.
Return on Equity
20.0%
Return on Assets
10.0%
Leverage Boost
+10.0%
Direct check (NI/Equity)
20.0%
The three engines of ROE
Net margin × asset turnover × equity multiplier — each bar shows one factor.
8.0% × 1.25 × 2.00 = 20.0% ROE — a balanced profile.
Reading the gap: operations alone (ROA) earn 10.0%; leverage lifts that to 20.0% for shareholders. A big lift from a high multiplier flatters ROE in good times and multiplies pain in bad ones — pair this view with the interest-coverage ratio in the Ratio Analysis calculator before praising the number.