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.
Paying user area
Try for free
NVIDIA Corp. pages available for free this week:
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Analysis of Short-term (Operating) Activity Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Current Ratio since 2005
- Price to Sales (P/S) since 2005
- Analysis of Debt
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to NVIDIA Corp. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Two-Component Disaggregation of ROE
NVIDIA Corp., decomposition of ROE
| ROE | = | ROA | × | Financial Leverage | |
|---|---|---|---|---|---|
| Jan 26, 2025 | = | × | |||
| Jan 28, 2024 | = | × | |||
| Jan 29, 2023 | = | × | |||
| Jan 30, 2022 | = | × | |||
| Jan 31, 2021 | = | × | |||
| Jan 26, 2020 | = | × |
Based on: 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26).
The primary reason for the increase in return on equity ratio (ROE) over 2025 year is the increase in profitability measured by return on assets ratio (ROA).
Three-Component Disaggregation of ROE
NVIDIA Corp., decomposition of ROE
| ROE | = | Net Profit Margin | × | Asset Turnover | × | Financial Leverage | |
|---|---|---|---|---|---|---|---|
| Jan 26, 2025 | = | × | × | ||||
| Jan 28, 2024 | = | × | × | ||||
| Jan 29, 2023 | = | × | × | ||||
| Jan 30, 2022 | = | × | × | ||||
| Jan 31, 2021 | = | × | × | ||||
| Jan 26, 2020 | = | × | × |
Based on: 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26).
The primary reason for the increase in return on equity ratio (ROE) over 2025 year is the increase in efficiency measured by asset turnover ratio.
Five-Component Disaggregation of ROE
NVIDIA Corp., decomposition of ROE
Based on: 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26).
The primary reason for the increase in return on equity ratio (ROE) over 2025 year is the increase in efficiency measured by asset turnover ratio.
Two-Component Disaggregation of ROA
NVIDIA Corp., decomposition of ROA
| ROA | = | Net Profit Margin | × | Asset Turnover | |
|---|---|---|---|---|---|
| Jan 26, 2025 | = | × | |||
| Jan 28, 2024 | = | × | |||
| Jan 29, 2023 | = | × | |||
| Jan 30, 2022 | = | × | |||
| Jan 31, 2021 | = | × | |||
| Jan 26, 2020 | = | × |
Based on: 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26).
The primary reason for the increase in return on assets ratio (ROA) over 2025 year is the increase in asset turnover ratio.
Four-Component Disaggregation of ROA
NVIDIA Corp., decomposition of ROA
| ROA | = | Tax Burden | × | Interest Burden | × | EBIT Margin | × | Asset Turnover | |
|---|---|---|---|---|---|---|---|---|---|
| Jan 26, 2025 | = | × | × | × | |||||
| Jan 28, 2024 | = | × | × | × | |||||
| Jan 29, 2023 | = | × | × | × | |||||
| Jan 30, 2022 | = | × | × | × | |||||
| Jan 31, 2021 | = | × | × | × | |||||
| Jan 26, 2020 | = | × | × | × |
Based on: 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26).
The primary reason for the increase in return on assets ratio (ROA) over 2025 year is the increase in efficiency measured by asset turnover ratio.
Disaggregation of Net Profit Margin
NVIDIA Corp., decomposition of net profit margin ratio
| Net Profit Margin | = | Tax Burden | × | Interest Burden | × | EBIT Margin | |
|---|---|---|---|---|---|---|---|
| Jan 26, 2025 | = | × | × | ||||
| Jan 28, 2024 | = | × | × | ||||
| Jan 29, 2023 | = | × | × | ||||
| Jan 30, 2022 | = | × | × | ||||
| Jan 31, 2021 | = | × | × | ||||
| Jan 26, 2020 | = | × | × |
Based on: 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26).
The primary reason for the increase in net profit margin ratio over 2025 year is the increase in operating profitability measured by EBIT margin ratio.