Stock Analysis on Net
Stock Analysis on Net

Celgene Corp. (NASDAQ:CELG)

This company has been moved to the archive! The financial data has not been updated since October 31, 2019.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Celgene Corp., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2018 65.67% = 11.40% × 5.76
Dec 31, 2017 42.48% = 9.75% × 4.36
Dec 31, 2016 30.29% = 7.12% × 4.26
Dec 31, 2015 27.07% = 5.92% × 4.57
Dec 31, 2014 30.65% = 11.53% × 2.66

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

The primary reason for the increase in return on equity ratio (ROE) over 2018 year is the increase in financial leverage ratio.

Three-Component Disaggregation of ROE

Celgene Corp., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2018 65.67% = 26.51% × 0.43 × 5.76
Dec 31, 2017 42.48% = 22.66% × 0.43 × 4.36
Dec 31, 2016 30.29% = 17.87% × 0.40 × 4.26
Dec 31, 2015 27.07% = 17.49% × 0.34 × 4.57
Dec 31, 2014 30.65% = 26.44% × 0.44 × 2.66

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

The primary reason for the increase in return on equity ratio (ROE) over 2018 year is the increase in financial leverage ratio.

Five-Component Disaggregation of ROE

Celgene Corp., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 31, 2018 65.67% = 0.84 × 0.87 × 36.51% × 0.43 × 5.76
Dec 31, 2017 42.48% = 0.68 × 0.89 × 37.28% × 0.43 × 4.36
Dec 31, 2016 30.29% = 0.84 × 0.83 × 25.68% × 0.40 × 4.26
Dec 31, 2015 27.07% = 0.79 × 0.87 × 25.48% × 0.34 × 4.57
Dec 31, 2014 30.65% = 0.86 × 0.93 × 33.10% × 0.44 × 2.66

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

The primary reason for the increase in return on equity ratio (ROE) over 2018 year is the increase in financial leverage ratio.

Two-Component Disaggregation of ROA

Celgene Corp., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2018 11.40% = 26.51% × 0.43
Dec 31, 2017 9.75% = 22.66% × 0.43
Dec 31, 2016 7.12% = 17.87% × 0.40
Dec 31, 2015 5.92% = 17.49% × 0.34
Dec 31, 2014 11.53% = 26.44% × 0.44

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

The primary reason for the increase in return on assets ratio (ROA) over 2018 year is the increase in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

Celgene Corp., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2018 11.40% = 0.84 × 0.87 × 36.51% × 0.43
Dec 31, 2017 9.75% = 0.68 × 0.89 × 37.28% × 0.43
Dec 31, 2016 7.12% = 0.84 × 0.83 × 25.68% × 0.40
Dec 31, 2015 5.92% = 0.79 × 0.87 × 25.48% × 0.34
Dec 31, 2014 11.53% = 0.86 × 0.93 × 33.10% × 0.44

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

The primary reason for the increase in return on assets ratio (ROA) over 2018 year is the increase in effect of taxes measured by tax burden ratio.

Disaggregation of Net Profit Margin

Celgene Corp., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2018 26.51% = 0.84 × 0.87 × 36.51%
Dec 31, 2017 22.66% = 0.68 × 0.89 × 37.28%
Dec 31, 2016 17.87% = 0.84 × 0.83 × 25.68%
Dec 31, 2015 17.49% = 0.79 × 0.87 × 25.48%
Dec 31, 2014 26.44% = 0.86 × 0.93 × 33.10%

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

The primary reason for the increase in net profit margin ratio over 2018 year is the increase in effect of taxes measured by tax burden ratio.