Stock Analysis on Net
Stock Analysis on Net

Intuitive Surgical Inc. (NASDAQ:ISRG)

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

Microsoft Excel

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

Two-Component Disaggregation of ROE

Intuitive Surgical Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Sep 30, 2024 14.39% = 12.64% × 1.14
Jun 30, 2024 14.23% = 12.57% × 1.13
Mar 31, 2024 14.24% = 12.56% × 1.13
Dec 31, 2023 13.51% = 11.64% × 1.16
Sep 30, 2023 12.10% = 10.31% × 1.17
Jun 30, 2023 12.00% = 10.25% × 1.17
Mar 31, 2023 11.70% = 10.05% × 1.16
Dec 31, 2022 11.98% = 10.19% × 1.17
Sep 30, 2022 11.97% = 10.39% × 1.15
Jun 30, 2022 11.93% = 10.47% × 1.14
Mar 31, 2022 13.58% = 12.02% × 1.13
Dec 31, 2021 14.32% = 12.58% × 1.14
Sep 30, 2021 14.80% = 13.06% × 1.13
Jun 30, 2021 14.97% = 13.20% × 1.13
Mar 31, 2021 11.56% = 10.17% × 1.14
Dec 31, 2020 10.90% = 9.50% × 1.15
Sep 30, 2020 11.38% = 9.92% × 1.15
Jun 30, 2020 13.00% = 11.24% × 1.16
Mar 31, 2020 16.30% = 14.02% × 1.16
Dec 31, 2019 16.69% = 14.17% × 1.18
Sep 30, 2019 — = — × 1.18
Jun 30, 2019 — = — × 1.17
Mar 31, 2019 — = — × 1.17

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q3 2024 is the increase in financial leverage ratio.

Three-Component Disaggregation of ROE

Intuitive Surgical Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Sep 30, 2024 14.39% = 28.51% × 0.44 × 1.14
Jun 30, 2024 14.23% = 27.65% × 0.45 × 1.13
Mar 31, 2024 14.24% = 27.16% × 0.46 × 1.13
Dec 31, 2023 13.51% = 25.24% × 0.46 × 1.16
Sep 30, 2023 12.10% = 22.14% × 0.47 × 1.17
Jun 30, 2023 12.00% = 21.38% × 0.48 × 1.17
Mar 31, 2023 11.70% = 20.40% × 0.49 × 1.16
Dec 31, 2022 11.98% = 21.25% × 0.48 × 1.17
Sep 30, 2022 11.97% = 22.52% × 0.46 × 1.15
Jun 30, 2022 11.93% = 24.05% × 0.44 × 1.14
Mar 31, 2022 13.58% = 27.84% × 0.43 × 1.13
Dec 31, 2021 14.32% = 29.85% × 0.42 × 1.14
Sep 30, 2021 14.80% = 30.78% × 0.42 × 1.13
Jun 30, 2021 14.97% = 31.43% × 0.42 × 1.13
Mar 31, 2021 11.56% = 25.78% × 0.39 × 1.14
Dec 31, 2020 10.90% = 24.33% × 0.39 × 1.15
Sep 30, 2020 11.38% = 24.45% × 0.41 × 1.15
Jun 30, 2020 13.00% = 26.07% × 0.43 × 1.16
Mar 31, 2020 16.30% = 30.11% × 0.47 × 1.16
Dec 31, 2019 16.69% = 30.80% × 0.46 × 1.18
Sep 30, 2019 — = — × — × 1.18
Jun 30, 2019 — = — × — × 1.17
Mar 31, 2019 — = — × — × 1.17

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q3 2024 is the increase in profitability measured by net profit margin ratio.

Two-Component Disaggregation of ROA

Intuitive Surgical Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Sep 30, 2024 12.64% = 28.51% × 0.44
Jun 30, 2024 12.57% = 27.65% × 0.45
Mar 31, 2024 12.56% = 27.16% × 0.46
Dec 31, 2023 11.64% = 25.24% × 0.46
Sep 30, 2023 10.31% = 22.14% × 0.47
Jun 30, 2023 10.25% = 21.38% × 0.48
Mar 31, 2023 10.05% = 20.40% × 0.49
Dec 31, 2022 10.19% = 21.25% × 0.48
Sep 30, 2022 10.39% = 22.52% × 0.46
Jun 30, 2022 10.47% = 24.05% × 0.44
Mar 31, 2022 12.02% = 27.84% × 0.43
Dec 31, 2021 12.58% = 29.85% × 0.42
Sep 30, 2021 13.06% = 30.78% × 0.42
Jun 30, 2021 13.20% = 31.43% × 0.42
Mar 31, 2021 10.17% = 25.78% × 0.39
Dec 31, 2020 9.50% = 24.33% × 0.39
Sep 30, 2020 9.92% = 24.45% × 0.41
Jun 30, 2020 11.24% = 26.07% × 0.43
Mar 31, 2020 14.02% = 30.11% × 0.47
Dec 31, 2019 14.17% = 30.80% × 0.46
Sep 30, 2019 — = — × —
Jun 30, 2019 — = — × —
Mar 31, 2019 — = — × —

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on assets ratio (ROA) over Q3 2024 is the increase in profitability measured by net profit margin ratio.