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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- Statement of Comprehensive Income
- Balance Sheet: Assets
- Common-Size Balance Sheet: Assets
- Analysis of Long-term (Investment) Activity Ratios
- Analysis of Reportable Segments
- Common Stock Valuation Ratios
- Net Profit Margin since 2005
- Operating Profit Margin since 2005
- Price to Sales (P/S) since 2005
- Aggregate Accruals
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Two-Component Disaggregation of ROE
Costco Wholesale Corp., decomposition of ROE
| ROE | = | ROA | × | Financial Leverage | |
|---|---|---|---|---|---|
| Sep 1, 2024 | = | × | |||
| Sep 3, 2023 | = | × | |||
| Aug 28, 2022 | = | × | |||
| Aug 29, 2021 | = | × | |||
| Aug 30, 2020 | = | × | |||
| Sep 1, 2019 | = | × |
Based on: 10-K (reporting date: 2024-09-01), 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01).
The primary reason for the increase in return on equity ratio (ROE) over 2024 year is the increase in profitability measured by return on assets ratio (ROA).
Three-Component Disaggregation of ROE
Costco Wholesale Corp., decomposition of ROE
| ROE | = | Net Profit Margin | × | Asset Turnover | × | Financial Leverage | |
|---|---|---|---|---|---|---|---|
| Sep 1, 2024 | = | × | × | ||||
| Sep 3, 2023 | = | × | × | ||||
| Aug 28, 2022 | = | × | × | ||||
| Aug 29, 2021 | = | × | × | ||||
| Aug 30, 2020 | = | × | × | ||||
| Sep 1, 2019 | = | × | × |
Based on: 10-K (reporting date: 2024-09-01), 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01).
The primary reason for the increase in return on equity ratio (ROE) over 2024 year is the increase in profitability measured by net profit margin ratio.
Five-Component Disaggregation of ROE
Costco Wholesale Corp., decomposition of ROE
Based on: 10-K (reporting date: 2024-09-01), 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01).
The primary reason for the increase in return on equity ratio (ROE) over 2024 year is the increase in operating profitability measured by EBIT margin ratio.
Two-Component Disaggregation of ROA
Costco Wholesale Corp., decomposition of ROA
| ROA | = | Net Profit Margin | × | Asset Turnover | |
|---|---|---|---|---|---|
| Sep 1, 2024 | = | × | |||
| Sep 3, 2023 | = | × | |||
| Aug 28, 2022 | = | × | |||
| Aug 29, 2021 | = | × | |||
| Aug 30, 2020 | = | × | |||
| Sep 1, 2019 | = | × |
Based on: 10-K (reporting date: 2024-09-01), 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01).
The primary reason for the increase in return on assets ratio (ROA) over 2024 year is the increase in profitability measured by net profit margin ratio.
Four-Component Disaggregation of ROA
Costco Wholesale Corp., decomposition of ROA
| ROA | = | Tax Burden | × | Interest Burden | × | EBIT Margin | × | Asset Turnover | |
|---|---|---|---|---|---|---|---|---|---|
| Sep 1, 2024 | = | × | × | × | |||||
| Sep 3, 2023 | = | × | × | × | |||||
| Aug 28, 2022 | = | × | × | × | |||||
| Aug 29, 2021 | = | × | × | × | |||||
| Aug 30, 2020 | = | × | × | × | |||||
| Sep 1, 2019 | = | × | × | × |
Based on: 10-K (reporting date: 2024-09-01), 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01).
The primary reason for the increase in return on assets ratio (ROA) over 2024 year is the increase in operating profitability measured by EBIT margin ratio.
Disaggregation of Net Profit Margin
Costco Wholesale Corp., decomposition of net profit margin ratio
| Net Profit Margin | = | Tax Burden | × | Interest Burden | × | EBIT Margin | |
|---|---|---|---|---|---|---|---|
| Sep 1, 2024 | = | × | × | ||||
| Sep 3, 2023 | = | × | × | ||||
| Aug 28, 2022 | = | × | × | ||||
| Aug 29, 2021 | = | × | × | ||||
| Aug 30, 2020 | = | × | × | ||||
| Sep 1, 2019 | = | × | × |
Based on: 10-K (reporting date: 2024-09-01), 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01).
The primary reason for the increase in net profit margin ratio over 2024 year is the increase in operating profitability measured by EBIT margin ratio.