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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- Income Statement
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- Analysis of Liquidity Ratios
- Analysis of Geographic Areas
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Operating Profit Margin since 2009
- Return on Equity (ROE) since 2009
- Debt to Equity since 2009
- Price to Sales (P/S) since 2009
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Two-Component Disaggregation of ROE
Broadcom Inc., decomposition of ROE
| ROE | = | ROA | × | Financial Leverage | |
|---|---|---|---|---|---|
| Oct 29, 2023 | = | × | |||
| Oct 30, 2022 | = | × | |||
| Oct 31, 2021 | = | × | |||
| Nov 1, 2020 | = | × | |||
| Nov 3, 2019 | = | × | |||
| Nov 4, 2018 | = | × |
Based on: 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-11-01), 10-K (reporting date: 2019-11-03), 10-K (reporting date: 2018-11-04).
The primary reason for the increase in return on equity ratio (ROE) over 2023 year is the increase in profitability measured by return on assets ratio (ROA).
Three-Component Disaggregation of ROE
Broadcom Inc., decomposition of ROE
| ROE | = | Net Profit Margin | × | Asset Turnover | × | Financial Leverage | |
|---|---|---|---|---|---|---|---|
| Oct 29, 2023 | = | × | × | ||||
| Oct 30, 2022 | = | × | × | ||||
| Oct 31, 2021 | = | × | × | ||||
| Nov 1, 2020 | = | × | × | ||||
| Nov 3, 2019 | = | × | × | ||||
| Nov 4, 2018 | = | × | × |
Based on: 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-11-01), 10-K (reporting date: 2019-11-03), 10-K (reporting date: 2018-11-04).
The primary reason for the increase in return on equity ratio (ROE) over 2023 year is the increase in profitability measured by net profit margin ratio.
Five-Component Disaggregation of ROE
Broadcom Inc., decomposition of ROE
Based on: 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-11-01), 10-K (reporting date: 2019-11-03), 10-K (reporting date: 2018-11-04).
The primary reason for the increase in return on equity ratio (ROE) over 2023 year is the increase in operating profitability measured by EBIT margin ratio.
Two-Component Disaggregation of ROA
Broadcom Inc., decomposition of ROA
| ROA | = | Net Profit Margin | × | Asset Turnover | |
|---|---|---|---|---|---|
| Oct 29, 2023 | = | × | |||
| Oct 30, 2022 | = | × | |||
| Oct 31, 2021 | = | × | |||
| Nov 1, 2020 | = | × | |||
| Nov 3, 2019 | = | × | |||
| Nov 4, 2018 | = | × |
Based on: 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-11-01), 10-K (reporting date: 2019-11-03), 10-K (reporting date: 2018-11-04).
The primary reason for the increase in return on assets ratio (ROA) over 2023 year is the increase in profitability measured by net profit margin ratio.
Four-Component Disaggregation of ROA
Broadcom Inc., decomposition of ROA
| ROA | = | Tax Burden | × | Interest Burden | × | EBIT Margin | × | Asset Turnover | |
|---|---|---|---|---|---|---|---|---|---|
| Oct 29, 2023 | = | × | × | × | |||||
| Oct 30, 2022 | = | × | × | × | |||||
| Oct 31, 2021 | = | × | × | × | |||||
| Nov 1, 2020 | = | × | × | × | |||||
| Nov 3, 2019 | = | × | × | × | |||||
| Nov 4, 2018 | = | × | × | × |
Based on: 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-11-01), 10-K (reporting date: 2019-11-03), 10-K (reporting date: 2018-11-04).
The primary reason for the increase in return on assets ratio (ROA) over 2023 year is the increase in operating profitability measured by EBIT margin ratio.
Disaggregation of Net Profit Margin
Broadcom Inc., decomposition of net profit margin ratio
| Net Profit Margin | = | Tax Burden | × | Interest Burden | × | EBIT Margin | |
|---|---|---|---|---|---|---|---|
| Oct 29, 2023 | = | × | × | ||||
| Oct 30, 2022 | = | × | × | ||||
| Oct 31, 2021 | = | × | × | ||||
| Nov 1, 2020 | = | × | × | ||||
| Nov 3, 2019 | = | × | × | ||||
| Nov 4, 2018 | = | × | × |
Based on: 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-11-01), 10-K (reporting date: 2019-11-03), 10-K (reporting date: 2018-11-04).
The primary reason for the increase in net profit margin ratio over 2023 year is the increase in operating profitability measured by EBIT margin ratio.