Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.
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- Income Statement
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Reportable Segments
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Price to Sales (P/S) since 2005
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Two-Component Disaggregation of ROE
ROE | = | ROA | × | Financial Leverage | |
---|---|---|---|---|---|
Dec 31, 2017 | = | × | |||
Dec 31, 2016 | = | × | |||
Dec 31, 2015 | = | × | |||
Dec 31, 2014 | = | × | |||
Dec 31, 2013 | = | × |
Based on: 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), 10-K (reporting date: 2013-12-31).
The primary reason for the increase in return on equity ratio (ROE) over 2017 year is the increase in profitability measured by return on assets ratio (ROA).
Three-Component Disaggregation of ROE
ROE | = | Net Profit Margin | × | Asset Turnover | × | Financial Leverage | |
---|---|---|---|---|---|---|---|
Dec 31, 2017 | = | × | × | ||||
Dec 31, 2016 | = | × | × | ||||
Dec 31, 2015 | = | × | × | ||||
Dec 31, 2014 | = | × | × | ||||
Dec 31, 2013 | = | × | × |
Based on: 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), 10-K (reporting date: 2013-12-31).
The primary reason for the increase in return on equity ratio (ROE) over 2017 year is the increase in profitability measured by net profit margin ratio.
Five-Component Disaggregation of ROE
Based on: 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), 10-K (reporting date: 2013-12-31).
The primary reason for the increase in return on equity ratio (ROE) over 2017 year is the increase in effect of taxes measured by tax burden ratio.
Two-Component Disaggregation of ROA
ROA | = | Net Profit Margin | × | Asset Turnover | |
---|---|---|---|---|---|
Dec 31, 2017 | = | × | |||
Dec 31, 2016 | = | × | |||
Dec 31, 2015 | = | × | |||
Dec 31, 2014 | = | × | |||
Dec 31, 2013 | = | × |
Based on: 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), 10-K (reporting date: 2013-12-31).
The primary reason for the increase in return on assets ratio (ROA) over 2017 year is the increase in profitability measured by net profit margin ratio.
Four-Component Disaggregation of ROA
ROA | = | Tax Burden | × | Interest Burden | × | EBIT Margin | × | Asset Turnover | |
---|---|---|---|---|---|---|---|---|---|
Dec 31, 2017 | = | × | × | × | |||||
Dec 31, 2016 | = | × | × | × | |||||
Dec 31, 2015 | = | × | × | × | |||||
Dec 31, 2014 | = | × | × | × | |||||
Dec 31, 2013 | = | × | × | × |
Based on: 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), 10-K (reporting date: 2013-12-31).
The primary reason for the increase in return on assets ratio (ROA) over 2017 year is the increase in effect of taxes measured by tax burden ratio.
Disaggregation of Net Profit Margin
Net Profit Margin | = | Tax Burden | × | Interest Burden | × | EBIT Margin | |
---|---|---|---|---|---|---|---|
Dec 31, 2017 | = | × | × | ||||
Dec 31, 2016 | = | × | × | ||||
Dec 31, 2015 | = | × | × | ||||
Dec 31, 2014 | = | × | × | ||||
Dec 31, 2013 | = | × | × |
Based on: 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), 10-K (reporting date: 2013-12-31).
The primary reason for the increase in net profit margin ratio over 2017 year is the increase in effect of taxes measured by tax burden ratio.