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
Cisco Systems Inc., decomposition of ROE
| ROE | = | ROA | × | Financial Leverage | |
|---|---|---|---|---|---|
| Jul 27, 2024 | = | × | |||
| Jul 29, 2023 | = | × | |||
| Jul 30, 2022 | = | × | |||
| Jul 31, 2021 | = | × | |||
| Jul 25, 2020 | = | × | |||
| Jul 27, 2019 | = | × |
Based on: 10-K (reporting date: 2024-07-27), 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27).
The primary reason for the decrease in return on equity ratio (ROE) over 2024 year is the decrease in profitability measured by return on assets ratio (ROA).
Three-Component Disaggregation of ROE
Cisco Systems Inc., decomposition of ROE
| ROE | = | Net Profit Margin | × | Asset Turnover | × | Financial Leverage | |
|---|---|---|---|---|---|---|---|
| Jul 27, 2024 | = | × | × | ||||
| Jul 29, 2023 | = | × | × | ||||
| Jul 30, 2022 | = | × | × | ||||
| Jul 31, 2021 | = | × | × | ||||
| Jul 25, 2020 | = | × | × | ||||
| Jul 27, 2019 | = | × | × |
Based on: 10-K (reporting date: 2024-07-27), 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27).
The primary reason for the decrease in return on equity ratio (ROE) over 2024 year is the decrease in efficiency measured by asset turnover ratio.
Five-Component Disaggregation of ROE
Cisco Systems Inc., decomposition of ROE
Based on: 10-K (reporting date: 2024-07-27), 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27).
The primary reason for the decrease in return on equity ratio (ROE) over 2024 year is the decrease in efficiency measured by asset turnover ratio.
Two-Component Disaggregation of ROA
Cisco Systems Inc., decomposition of ROA
| ROA | = | Net Profit Margin | × | Asset Turnover | |
|---|---|---|---|---|---|
| Jul 27, 2024 | = | × | |||
| Jul 29, 2023 | = | × | |||
| Jul 30, 2022 | = | × | |||
| Jul 31, 2021 | = | × | |||
| Jul 25, 2020 | = | × | |||
| Jul 27, 2019 | = | × |
Based on: 10-K (reporting date: 2024-07-27), 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27).
The primary reason for the decrease in return on assets ratio (ROA) over 2024 year is the decrease in asset turnover ratio.
Four-Component Disaggregation of ROA
Cisco Systems Inc., decomposition of ROA
| ROA | = | Tax Burden | × | Interest Burden | × | EBIT Margin | × | Asset Turnover | |
|---|---|---|---|---|---|---|---|---|---|
| Jul 27, 2024 | = | × | × | × | |||||
| Jul 29, 2023 | = | × | × | × | |||||
| Jul 30, 2022 | = | × | × | × | |||||
| Jul 31, 2021 | = | × | × | × | |||||
| Jul 25, 2020 | = | × | × | × | |||||
| Jul 27, 2019 | = | × | × | × |
Based on: 10-K (reporting date: 2024-07-27), 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27).
The primary reason for the decrease in return on assets ratio (ROA) over 2024 year is the decrease in efficiency measured by asset turnover ratio.
Disaggregation of Net Profit Margin
Cisco Systems Inc., decomposition of net profit margin ratio
| Net Profit Margin | = | Tax Burden | × | Interest Burden | × | EBIT Margin | |
|---|---|---|---|---|---|---|---|
| Jul 27, 2024 | = | × | × | ||||
| Jul 29, 2023 | = | × | × | ||||
| Jul 30, 2022 | = | × | × | ||||
| Jul 31, 2021 | = | × | × | ||||
| Jul 25, 2020 | = | × | × | ||||
| Jul 27, 2019 | = | × | × |
Based on: 10-K (reporting date: 2024-07-27), 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27).
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.