DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.
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Two-Component Disaggregation of ROE
Adobe Inc., decomposition of ROE
| ROE | = | ROA | × | Financial Leverage | |
|---|---|---|---|---|---|
| Nov 29, 2024 | = | × | |||
| Dec 1, 2023 | = | × | |||
| Dec 2, 2022 | = | × | |||
| Dec 3, 2021 | = | × | |||
| Nov 27, 2020 | = | × | |||
| Nov 29, 2019 | = | × |
Based on: 10-K (reporting date: 2024-11-29), 10-K (reporting date: 2023-12-01), 10-K (reporting date: 2022-12-02), 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27), 10-K (reporting date: 2019-11-29).
The primary reason for the increase in return on equity ratio (ROE) over 2024 year is the increase in financial leverage ratio.
Three-Component Disaggregation of ROE
Adobe Inc., decomposition of ROE
| ROE | = | Net Profit Margin | × | Asset Turnover | × | Financial Leverage | |
|---|---|---|---|---|---|---|---|
| Nov 29, 2024 | = | × | × | ||||
| Dec 1, 2023 | = | × | × | ||||
| Dec 2, 2022 | = | × | × | ||||
| Dec 3, 2021 | = | × | × | ||||
| Nov 27, 2020 | = | × | × | ||||
| Nov 29, 2019 | = | × | × |
Based on: 10-K (reporting date: 2024-11-29), 10-K (reporting date: 2023-12-01), 10-K (reporting date: 2022-12-02), 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27), 10-K (reporting date: 2019-11-29).
The primary reason for the increase in return on equity ratio (ROE) over 2024 year is the increase in financial leverage ratio.
Five-Component Disaggregation of ROE
Adobe Inc., decomposition of ROE
Based on: 10-K (reporting date: 2024-11-29), 10-K (reporting date: 2023-12-01), 10-K (reporting date: 2022-12-02), 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27), 10-K (reporting date: 2019-11-29).
The primary reason for the increase in return on equity ratio (ROE) over 2024 year is the increase in financial leverage ratio.
Two-Component Disaggregation of ROA
Adobe Inc., decomposition of ROA
| ROA | = | Net Profit Margin | × | Asset Turnover | |
|---|---|---|---|---|---|
| Nov 29, 2024 | = | × | |||
| Dec 1, 2023 | = | × | |||
| Dec 2, 2022 | = | × | |||
| Dec 3, 2021 | = | × | |||
| Nov 27, 2020 | = | × | |||
| Nov 29, 2019 | = | × |
Based on: 10-K (reporting date: 2024-11-29), 10-K (reporting date: 2023-12-01), 10-K (reporting date: 2022-12-02), 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27), 10-K (reporting date: 2019-11-29).
The primary reason for the increase in return on assets ratio (ROA) over 2024 year is the increase in asset turnover ratio.
Four-Component Disaggregation of ROA
Adobe Inc., decomposition of ROA
| ROA | = | Tax Burden | × | Interest Burden | × | EBIT Margin | × | Asset Turnover | |
|---|---|---|---|---|---|---|---|---|---|
| Nov 29, 2024 | = | × | × | × | |||||
| Dec 1, 2023 | = | × | × | × | |||||
| Dec 2, 2022 | = | × | × | × | |||||
| Dec 3, 2021 | = | × | × | × | |||||
| Nov 27, 2020 | = | × | × | × | |||||
| Nov 29, 2019 | = | × | × | × |
Based on: 10-K (reporting date: 2024-11-29), 10-K (reporting date: 2023-12-01), 10-K (reporting date: 2022-12-02), 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27), 10-K (reporting date: 2019-11-29).
The primary reason for the increase in return on assets ratio (ROA) over 2024 year is the increase in efficiency measured by asset turnover ratio.
Disaggregation of Net Profit Margin
Adobe Inc., decomposition of net profit margin ratio
| Net Profit Margin | = | Tax Burden | × | Interest Burden | × | EBIT Margin | |
|---|---|---|---|---|---|---|---|
| Nov 29, 2024 | = | × | × | ||||
| Dec 1, 2023 | = | × | × | ||||
| Dec 2, 2022 | = | × | × | ||||
| Dec 3, 2021 | = | × | × | ||||
| Nov 27, 2020 | = | × | × | ||||
| Nov 29, 2019 | = | × | × |
Based on: 10-K (reporting date: 2024-11-29), 10-K (reporting date: 2023-12-01), 10-K (reporting date: 2022-12-02), 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27), 10-K (reporting date: 2019-11-29).
The primary reason for the decrease in net profit margin ratio over 2024 year is the decrease in operating profitability measured by EBIT margin ratio.