When calculating the leverage ratio used in the profitability analysis model, total assets is divided by total equity.

Name: When calculating the leverage ratio used in the profitability analysis model, total assets is divided by total equity.
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The leverage ratio, specifically the equity multiplier in this context, is calculated by dividing total assets by total equity, indicating how much of the company's assets are financed by equity.

When Calculating the Leverage Ratio Used in the Profitability Analysis