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
Apple Inc., decomposition of ROE
| ROE | = | ROA | × | Financial Leverage | |
|---|---|---|---|---|---|
| Sep 30, 2023 | = | × | |||
| Sep 24, 2022 | = | × | |||
| Sep 25, 2021 | = | × | |||
| Sep 26, 2020 | = | × | |||
| Sep 28, 2019 | = | × | |||
| Sep 29, 2018 | = | × |
Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).
The primary reason for the decrease in return on equity ratio (ROE) over 2023 year is the decrease in financial leverage ratio.
Three-Component Disaggregation of ROE
Apple Inc., decomposition of ROE
| ROE | = | Net Profit Margin | × | Asset Turnover | × | Financial Leverage | |
|---|---|---|---|---|---|---|---|
| Sep 30, 2023 | = | × | × | ||||
| Sep 24, 2022 | = | × | × | ||||
| Sep 25, 2021 | = | × | × | ||||
| Sep 26, 2020 | = | × | × | ||||
| Sep 28, 2019 | = | × | × | ||||
| Sep 29, 2018 | = | × | × |
Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).
The primary reason for the decrease in return on equity ratio (ROE) over 2023 year is the decrease in financial leverage ratio.
Five-Component Disaggregation of ROE
Apple Inc., decomposition of ROE
Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).
The primary reason for the decrease in return on equity ratio (ROE) over 2023 year is the decrease in financial leverage ratio.
Two-Component Disaggregation of ROA
Apple Inc., decomposition of ROA
| ROA | = | Net Profit Margin | × | Asset Turnover | |
|---|---|---|---|---|---|
| Sep 30, 2023 | = | × | |||
| Sep 24, 2022 | = | × | |||
| Sep 25, 2021 | = | × | |||
| Sep 26, 2020 | = | × | |||
| Sep 28, 2019 | = | × | |||
| Sep 29, 2018 | = | × |
Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).
The primary reason for the decrease in return on assets ratio (ROA) over 2023 year is the decrease in asset turnover ratio.
Four-Component Disaggregation of ROA
Apple Inc., decomposition of ROA
| ROA | = | Tax Burden | × | Interest Burden | × | EBIT Margin | × | Asset Turnover | |
|---|---|---|---|---|---|---|---|---|---|
| Sep 30, 2023 | = | × | × | × | |||||
| Sep 24, 2022 | = | × | × | × | |||||
| Sep 25, 2021 | = | × | × | × | |||||
| Sep 26, 2020 | = | × | × | × | |||||
| Sep 28, 2019 | = | × | × | × | |||||
| Sep 29, 2018 | = | × | × | × |
Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).
The primary reason for the decrease in return on assets ratio (ROA) over 2023 year is the decrease in efficiency measured by asset turnover ratio.
Disaggregation of Net Profit Margin
Apple Inc., decomposition of net profit margin ratio
| Net Profit Margin | = | Tax Burden | × | Interest Burden | × | EBIT Margin | |
|---|---|---|---|---|---|---|---|
| Sep 30, 2023 | = | × | × | ||||
| Sep 24, 2022 | = | × | × | ||||
| Sep 25, 2021 | = | × | × | ||||
| Sep 26, 2020 | = | × | × | ||||
| Sep 28, 2019 | = | × | × | ||||
| Sep 29, 2018 | = | × | × |
Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).
The primary reason for the decrease in net profit margin ratio over 2023 year is the decrease in effect of interest expense measured by interest burden ratio.