DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data
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: Liabilities and Stockholders’ Equity
- Analysis of Reportable Segments
- Analysis of Geographic Areas
- Dividend Discount Model (DDM)
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Debt
- Aggregate Accruals
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Two-Component Disaggregation of ROE
Accenture PLC, decomposition of ROE (quarterly data)
Based on: 10-K (reporting date: 2025-08-31), 10-Q (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-K (reporting date: 2024-08-31), 10-Q (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-K (reporting date: 2023-08-31), 10-Q (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-K (reporting date: 2022-08-31), 10-Q (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-K (reporting date: 2021-08-31), 10-Q (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30).
- Return on Assets (ROA)
- The return on assets demonstrates a generally declining trend over the examined periods. Initially, ROA remained relatively stable around 13.7%, with slight fluctuations up to early 2022 where a modest peak near 15% is observed around November 2022. Following this peak, a gradual decrease occurs, dropping from approximately 14.5% in early 2023 to about 11.7% by the middle of 2025. This downward slope suggests a reduction in asset efficiency or profitability over time.
- Financial Leverage
- Financial leverage ratios show minor variations during the periods. Starting slightly above 2.1, the ratio remains mostly stable with a gentle decline up to early 2023, reaching lows near 1.89. After this point, the leverage gradually increases again, returning to slightly above 2.0 by mid-2025. The relatively narrow range and mid-cycle fluctuations imply consistent capital structure management with small shifts in debt to equity proportions.
- Return on Equity (ROE)
- The return on equity maintains a high level initially, ranging around 29% to 31% through to late 2022. Subsequently, a continuous decline occurs, with ROE dropping steadily to below 25% by the middle of 2025. This decreasing trajectory indicates a diminished capacity to generate profit from shareholder investments, possibly influenced by the falling ROA and changing financial leverage.
Three-Component Disaggregation of ROE
Accenture PLC, decomposition of ROE (quarterly data)
Based on: 10-K (reporting date: 2025-08-31), 10-Q (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-K (reporting date: 2024-08-31), 10-Q (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-K (reporting date: 2023-08-31), 10-Q (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-K (reporting date: 2022-08-31), 10-Q (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-K (reporting date: 2021-08-31), 10-Q (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30).
- Net Profit Margin
- The net profit margin exhibited a generally stable pattern with slight fluctuations over the observed periods. Starting at 11.74% in late 2020, it experienced minor increases and decreases, reaching a low point around early 2023 at approximately 10.65%-10.72%. Subsequently, a modest recovery phase occurred, elevating the margin to around 11.6% by mid-2025, though it again showed a minor decline toward the end of the period. Overall, the margin remained within a narrow range, suggesting consistent profitability relative to revenue despite short-term variability.
- Asset Turnover
- Asset turnover demonstrated an upward trajectory during the initial phase, increasing from 1.17 to a peak of roughly 1.32 between late 2020 and early 2023, indicative of improving efficiency in using assets to generate sales. However, after this peak, asset turnover gradually declined, falling to around 1.07 by mid-2025. This decline suggests a decreasing efficiency or increased asset base not matched by proportional revenue growth in the latter periods.
- Financial Leverage
- Financial leverage ratios remained relatively stable, fluctuating mildly between 2.14 and 2.21 during the first half of the timeline, with a tendency toward a gradual decrease starting in late 2022. It reached a low near 1.89 in early 2024, followed by a gradual increase back up to approximately 2.1 by mid-2025. The moderate variability suggests controlled changes in the company's use of debt relative to equity, balancing risk considerations without major shifts in capital structure.
- Return on Equity (ROE)
- The return on equity showed a declining trend over the period. Beginning with a strong performance around 29-30% through late 2021 and early 2022, ROE began a steady downward trajectory after early 2023, reaching approximately 24.61% by mid-2025. This persistent decrease points to reducing profitability relative to shareholder equity, which may be linked to declining net margins, asset turnover, or shifts in financial leverage.
Five-Component Disaggregation of ROE
Accenture PLC, decomposition of ROE (quarterly data)
Based on: 10-K (reporting date: 2025-08-31), 10-Q (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-K (reporting date: 2024-08-31), 10-Q (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-K (reporting date: 2023-08-31), 10-Q (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-K (reporting date: 2022-08-31), 10-Q (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-K (reporting date: 2021-08-31), 10-Q (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30).
- Tax Burden
- The tax burden ratio remains relatively stable over the observed periods, generally around 0.76 to 0.77. This consistency indicates a steady effective tax rate influence on the company's profitability, with minimal fluctuations throughout the time frame.
- Interest Burden
- The interest burden ratio is predominantly at 0.99 or 1.00, with a slight decrease to 0.98 in the last two periods. This suggests that interest expenses have had a minimal or stable impact on earnings before taxes, reflecting effective management of interest costs or low levels of debt-related expenses.
- EBIT Margin
- The EBIT margin shows a mild decline from about 15.87% in mid-2021 to a low near 14.05% by late 2023, followed by a gradual recovery reaching approximately 15.42% by mid-2025. This pattern represents a period of reduced operating profitability, possibly due to increased costs or pricing pressures, with a subsequent improvement indicating operational efficiencies or favorable market conditions returning.
- Asset Turnover
- Asset turnover increased from roughly 1.17 at the start to a peak near 1.32 in late 2022, indicating improved utilization of assets to generate revenue. However, this was followed by a steady decline to around 1.07 by mid-2025, suggesting reduced efficiency in asset usage or increased asset base growth relative to revenue in the latter periods.
- Financial Leverage
- Financial leverage ratios show a moderate decrease from approximately 2.21 in mid-2021 to about 1.89 in early 2024, then a gradual return to around 2.10 by mid-2025. This fluctuation may reflect changes in capital structure, such as debt repayment followed by additional leverage or financing activities, impacting the equity base and overall risk profile.
- Return on Equity (ROE)
- ROE initially rises, peaking near 31.11% in late 2021 and early 2022, before declining steadily to a low of approximately 24.61% by mid-2025. This trend parallels the patterns observable in EBIT margin and asset turnover, suggesting that reduced operating profitability and asset efficiency have contributed to the diminishing returns to shareholders over time. The decline may also relate to changes in financial leverage affecting equity returns.
Two-Component Disaggregation of ROA
Accenture PLC, decomposition of ROA (quarterly data)
Based on: 10-K (reporting date: 2025-08-31), 10-Q (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-K (reporting date: 2024-08-31), 10-Q (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-K (reporting date: 2023-08-31), 10-Q (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-K (reporting date: 2022-08-31), 10-Q (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-K (reporting date: 2021-08-31), 10-Q (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30).
- Net Profit Margin
- The net profit margin remained relatively stable over the examined periods, fluctuating slightly around a narrow range between approximately 10.65% and 12.05%. Initially, it showed a mild upward trend, peaking near 12.05%, before gradually declining to just above 10.6%. Following that decline, it experienced modest fluctuations, generally maintaining a level close to 11%, with slight increases and decreases observed towards the later periods. This indicates consistent profitability with minor variability in profit efficiency over time.
- Asset Turnover
- The asset turnover ratio demonstrated a rising trend in the earlier periods, increasing from about 1.14 to a peak near 1.32. This implies improving efficiency in utilizing assets to generate revenue during that timeframe. After reaching the peak, the ratio began a gradual decline, reaching closer to 1.07 by the most recent period. The decreasing trend in the latter periods may indicate a reduction in asset efficiency or slower revenue growth relative to asset base expansion.
- Return on Assets (ROA)
- ROA exhibited an initial period of stable to slightly increasing returns, moving from approximately 13.65% up to nearly 15%. This suggests enhanced effectiveness in generating earnings from assets initially. However, following the peak, there was a notable, gradual decline in ROA down to around 11.7% by the end of the observed timeline. This decline may be attributable to either diminishing net profitability or less efficient asset utilization over time, and aligns with the observed patterns in asset turnover and net profit margin.
Four-Component Disaggregation of ROA
Accenture PLC, decomposition of ROA (quarterly data)
Based on: 10-K (reporting date: 2025-08-31), 10-Q (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-K (reporting date: 2024-08-31), 10-Q (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-K (reporting date: 2023-08-31), 10-Q (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-K (reporting date: 2022-08-31), 10-Q (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-K (reporting date: 2021-08-31), 10-Q (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30).
- Tax Burden
- The tax burden ratio remained relatively stable throughout the observed periods, fluctuating minimally between 0.76 and 0.77. This consistency indicates a steady effective tax rate on earnings over the analyzed quarters.
- Interest Burden
- The interest burden ratio showed minor variation, hovering around 0.99 to 1.00 for most periods. Toward the later periods, there was a slight decline to approximately 0.98. This suggests consistently low interest expenses relative to earnings before interest and taxes, reflecting effective interest cost management.
- EBIT Margin
- The EBIT margin exhibited a modest downward trend in the earlier periods, starting near 15.46% and decreasing to around 14.05% to 14.12% by mid-2023. From late 2023 onward, it showed a gradual recovery, reaching approximately 15.42% before a minor decline to 14.85% in the last recorded period. This pattern indicates some compression in operating profitability initially, followed by a partial rebound.
- Asset Turnover
- Asset turnover increased from roughly 1.17 in late 2020 to a peak near 1.32 by late 2022, indicating improved efficiency in using assets to generate revenue. However, post-2022, the ratio declined steadily to about 1.07 by mid-2025. This suggests a decrease in asset utilization efficiency during the latter periods covered.
- Return on Assets (ROA)
- The return on assets displayed an initial increase from approximately 13.72% to a high near 14.97% around late 2022. Subsequently, it trended downward to 11.74% by mid-2025. This trajectory mirrors the movements observed in EBIT margin and asset turnover, indicating that overall asset profitability improved until late 2022 but weakened thereafter.
Disaggregation of Net Profit Margin
Accenture PLC, decomposition of net profit margin ratio (quarterly data)
Based on: 10-K (reporting date: 2025-08-31), 10-Q (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-K (reporting date: 2024-08-31), 10-Q (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-K (reporting date: 2023-08-31), 10-Q (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-K (reporting date: 2022-08-31), 10-Q (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-K (reporting date: 2021-08-31), 10-Q (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30).
- Tax Burden
- The tax burden ratio has remained relatively stable over the observed periods, consistently hovering around 0.76 to 0.77. This indicates a steady proportion of income retained after tax expenses without significant volatility.
- Interest Burden
- The interest burden ratio demonstrates minimal fluctuation, staying close to 0.99 and 1.0 for almost all quarters. A slight decrease is noted toward the end of the period, moving to 0.98, suggesting a marginal reduction in interest expense's impact on earnings before taxes.
- EBIT Margin
- The EBIT margin shows some degree of variability but remains generally within a range of approximately 14.0% to 16.0%. Early periods exhibit higher margins near 15.8%, followed by a slight dip around mid-period close to 14.0%. Toward the later quarters, the margin recovers somewhat, peaking back above 15.4% before a minor decline at the end. This pattern points to some operational efficiency changes or cost structure adjustments influencing profitability before interest and taxes.
- Net Profit Margin
- The net profit margin generally trends in alignment with the EBIT margin but with lower values, ranging from about 10.65% to 12.05%. The highest values occur in earlier quarters, with a downward shift visible mid-period. A modest recovery is observable afterward, though it does not fully return to the initial peak levels. This trend may reflect variations in tax burden, interest expenses, or other non-operational factors affecting the net profitability.