Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.
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- Cash Flow Statement
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Geographic Areas
- Price to FCFE (P/FCFE)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Assets (ROA) since 2005
- Current Ratio since 2005
- Price to Earnings (P/E) since 2005
- Aggregate Accruals
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Two-Component Disaggregation of ROE
ROE | = | ROA | × | Financial Leverage | |
---|---|---|---|---|---|
Sep 30, 2020 | = | × | |||
Sep 30, 2019 | = | × | |||
Sep 30, 2018 | = | × | |||
Sep 30, 2017 | = | × | |||
Sep 30, 2016 | = | × | |||
Sep 30, 2015 | = | × |
Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30).
The primary reason for the decrease in return on equity ratio (ROE) over 2020 year is the decrease in profitability measured by return on assets ratio (ROA).
Three-Component Disaggregation of ROE
ROE | = | Net Profit Margin | × | Asset Turnover | × | Financial Leverage | |
---|---|---|---|---|---|---|---|
Sep 30, 2020 | = | × | × | ||||
Sep 30, 2019 | = | × | × | ||||
Sep 30, 2018 | = | × | × | ||||
Sep 30, 2017 | = | × | × | ||||
Sep 30, 2016 | = | × | × | ||||
Sep 30, 2015 | = | × | × |
Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30).
The primary reason for the decrease in return on equity ratio (ROE) over 2020 year is the decrease in efficiency measured by asset turnover ratio.
Five-Component Disaggregation of ROE
Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30).
The primary reason for the decrease in return on equity ratio (ROE) over 2020 year is the decrease in efficiency measured by asset turnover ratio.
Two-Component Disaggregation of ROA
ROA | = | Net Profit Margin | × | Asset Turnover | |
---|---|---|---|---|---|
Sep 30, 2020 | = | × | |||
Sep 30, 2019 | = | × | |||
Sep 30, 2018 | = | × | |||
Sep 30, 2017 | = | × | |||
Sep 30, 2016 | = | × | |||
Sep 30, 2015 | = | × |
Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30).
The primary reason for the decrease in return on assets ratio (ROA) over 2020 year is the decrease in asset turnover ratio.
Four-Component Disaggregation of ROA
ROA | = | Tax Burden | × | Interest Burden | × | EBIT Margin | × | Asset Turnover | |
---|---|---|---|---|---|---|---|---|---|
Sep 30, 2020 | = | × | × | × | |||||
Sep 30, 2019 | = | × | × | × | |||||
Sep 30, 2018 | = | × | × | × | |||||
Sep 30, 2017 | = | × | × | × | |||||
Sep 30, 2016 | = | × | × | × | |||||
Sep 30, 2015 | = | × | × | × |
Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30).
The primary reason for the decrease in return on assets ratio (ROA) over 2020 year is the decrease in efficiency measured by asset turnover ratio.
Disaggregation of Net Profit Margin
Net Profit Margin | = | Tax Burden | × | Interest Burden | × | EBIT Margin | |
---|---|---|---|---|---|---|---|
Sep 30, 2020 | = | × | × | ||||
Sep 30, 2019 | = | × | × | ||||
Sep 30, 2018 | = | × | × | ||||
Sep 30, 2017 | = | × | × | ||||
Sep 30, 2016 | = | × | × | ||||
Sep 30, 2015 | = | × | × |
Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30).
The primary reason for the increase in net profit margin ratio over 2020 year is the increase in operating profitability measured by EBIT margin ratio.