DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit MarginQuarterly Data
Annual Data
Quarterly Data
Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.
Two-Component Disaggregation of ROE
Annual Data
Quarterly Data
Caterpillar Inc., decomposition of ROE (quarterly data)
ROE
=
ROA
×
Financial Leverage
Dec 31, 2024
55.37%
=
12.30%
×
4.50
Sep 30, 2024
55.04%
=
12.38%
×
4.45
Jun 30, 2024
64.26%
=
13.21%
×
4.86
Mar 31, 2024
63.77%
=
13.43%
×
4.75
Dec 31, 2023
53.02%
=
11.81%
×
4.49
Sep 30, 2023
44.48%
=
10.50%
×
4.24
Jun 30, 2023
45.85%
=
9.79%
×
4.68
Mar 31, 2023
39.18%
=
8.50%
×
4.61
Dec 31, 2022
42.25%
=
8.18%
×
5.16
Sep 30, 2022
47.28%
=
9.11%
×
5.19
Jun 30, 2022
42.96%
=
8.33%
×
5.16
Mar 31, 2022
38.07%
=
7.90%
×
4.82
Dec 31, 2021
39.37%
=
7.84%
×
5.02
Sep 30, 2021
30.90%
=
6.37%
×
4.85
Jun 30, 2021
26.09%
=
5.37%
×
4.85
Mar 31, 2021
20.73%
=
4.26%
×
4.87
Dec 31, 2020
19.56%
=
3.83%
×
5.11
Sep 30, 2020
—
=
—
×
5.13
Jun 30, 2020
—
=
—
×
5.57
Mar 31, 2020
—
=
—
×
5.35
Based on:
10-K (reporting date: 2024-12-31) ,
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) .
The primary reason for the increase in return on equity ratio (ROE) over Q4 2024 is the increase in financial leverage ratio.
Three-Component Disaggregation of ROE
Annual Data
Quarterly Data
Caterpillar Inc., decomposition of ROE (quarterly data)
ROE
=
Net Profit Margin
×
Asset Turnover
×
Financial Leverage
Dec 31, 2024
55.37%
=
17.59%
×
0.70
×
4.50
Sep 30, 2024
55.04%
=
17.15%
×
0.72
×
4.45
Jun 30, 2024
64.26%
=
17.46%
×
0.76
×
4.86
Mar 31, 2024
63.77%
=
17.65%
×
0.76
×
4.75
Dec 31, 2023
53.02%
=
16.18%
×
0.73
×
4.49
Sep 30, 2023
44.48%
=
14.35%
×
0.73
×
4.24
Jun 30, 2023
45.85%
=
13.53%
×
0.72
×
4.68
Mar 31, 2023
39.18%
=
12.10%
×
0.70
×
4.61
Dec 31, 2022
42.25%
=
11.85%
×
0.69
×
5.16
Sep 30, 2022
47.28%
=
13.70%
×
0.66
×
5.19
Jun 30, 2022
42.96%
=
13.19%
×
0.63
×
5.16
Mar 31, 2022
38.07%
=
13.02%
×
0.61
×
4.82
Dec 31, 2021
39.37%
=
13.47%
×
0.58
×
5.02
Sep 30, 2021
30.90%
=
11.28%
×
0.57
×
4.85
Jun 30, 2021
26.09%
=
10.17%
×
0.53
×
4.85
Mar 31, 2021
20.73%
=
8.53%
×
0.50
×
4.87
Dec 31, 2020
19.56%
=
7.68%
×
0.50
×
5.11
Sep 30, 2020
—
=
—
×
—
×
5.13
Jun 30, 2020
—
=
—
×
—
×
5.57
Mar 31, 2020
—
=
—
×
—
×
5.35
Based on:
10-K (reporting date: 2024-12-31) ,
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) .
The primary reason for the increase in return on equity ratio (ROE) over Q4 2024 is the increase in profitability measured by net profit margin ratio.
Five-Component Disaggregation of ROE
Annual Data
Quarterly Data
Caterpillar Inc., decomposition of ROE (quarterly data)
ROE
=
Tax Burden
×
Interest Burden
×
EBIT Margin
×
Asset Turnover
×
Financial Leverage
Dec 31, 2024
55.37%
=
0.80
×
0.96
×
22.71%
×
0.70
×
4.50
Sep 30, 2024
55.04%
=
0.80
×
0.96
×
22.42%
×
0.72
×
4.45
Jun 30, 2024
64.26%
=
0.79
×
0.96
×
22.83%
×
0.76
×
4.86
Mar 31, 2024
63.77%
=
0.80
×
0.96
×
22.81%
×
0.76
×
4.75
Dec 31, 2023
53.02%
=
0.79
×
0.96
×
21.34%
×
0.73
×
4.49
Sep 30, 2023
44.48%
=
0.76
×
0.96
×
19.61%
×
0.73
×
4.24
Jun 30, 2023
45.85%
=
0.76
×
0.96
×
18.57%
×
0.72
×
4.68
Mar 31, 2023
39.18%
=
0.76
×
0.95
×
16.81%
×
0.70
×
4.61
Dec 31, 2022
42.25%
=
0.76
×
0.95
×
16.29%
×
0.69
×
5.16
Sep 30, 2022
47.28%
=
0.80
×
0.95
×
17.96%
×
0.66
×
5.19
Jun 30, 2022
42.96%
=
0.80
×
0.95
×
17.36%
×
0.63
×
5.16
Mar 31, 2022
38.07%
=
0.79
×
0.95
×
17.41%
×
0.61
×
4.82
Dec 31, 2021
39.37%
=
0.79
×
0.94
×
18.09%
×
0.58
×
5.02
Sep 30, 2021
30.90%
=
0.78
×
0.93
×
15.63%
×
0.57
×
4.85
Jun 30, 2021
26.09%
=
0.77
×
0.92
×
14.40%
×
0.53
×
4.85
Mar 31, 2021
20.73%
=
0.76
×
0.89
×
12.49%
×
0.50
×
4.87
Dec 31, 2020
19.56%
=
0.75
×
0.89
×
11.58%
×
0.50
×
5.11
Sep 30, 2020
—
=
—
×
—
×
—
×
—
×
5.13
Jun 30, 2020
—
=
—
×
—
×
—
×
—
×
5.57
Mar 31, 2020
—
=
—
×
—
×
—
×
—
×
5.35
Based on:
10-K (reporting date: 2024-12-31) ,
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) .
The primary reason for the increase in return on equity ratio (ROE) over Q4 2024 is the increase in operating profitability measured by EBIT margin ratio.
Two-Component Disaggregation of ROA
Annual Data
Quarterly Data
Caterpillar Inc., decomposition of ROA (quarterly data)
ROA
=
Net Profit Margin
×
Asset Turnover
Dec 31, 2024
12.30%
=
17.59%
×
0.70
Sep 30, 2024
12.38%
=
17.15%
×
0.72
Jun 30, 2024
13.21%
=
17.46%
×
0.76
Mar 31, 2024
13.43%
=
17.65%
×
0.76
Dec 31, 2023
11.81%
=
16.18%
×
0.73
Sep 30, 2023
10.50%
=
14.35%
×
0.73
Jun 30, 2023
9.79%
=
13.53%
×
0.72
Mar 31, 2023
8.50%
=
12.10%
×
0.70
Dec 31, 2022
8.18%
=
11.85%
×
0.69
Sep 30, 2022
9.11%
=
13.70%
×
0.66
Jun 30, 2022
8.33%
=
13.19%
×
0.63
Mar 31, 2022
7.90%
=
13.02%
×
0.61
Dec 31, 2021
7.84%
=
13.47%
×
0.58
Sep 30, 2021
6.37%
=
11.28%
×
0.57
Jun 30, 2021
5.37%
=
10.17%
×
0.53
Mar 31, 2021
4.26%
=
8.53%
×
0.50
Dec 31, 2020
3.83%
=
7.68%
×
0.50
Sep 30, 2020
—
=
—
×
—
Jun 30, 2020
—
=
—
×
—
Mar 31, 2020
—
=
—
×
—
Based on:
10-K (reporting date: 2024-12-31) ,
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) .
The primary reason for the decrease in return on assets ratio (ROA) over Q4 2024 is the decrease in asset turnover ratio.
Four-Component Disaggregation of ROA
Annual Data
Quarterly Data
Caterpillar Inc., decomposition of ROA (quarterly data)
ROA
=
Tax Burden
×
Interest Burden
×
EBIT Margin
×
Asset Turnover
Dec 31, 2024
12.30%
=
0.80
×
0.96
×
22.71%
×
0.70
Sep 30, 2024
12.38%
=
0.80
×
0.96
×
22.42%
×
0.72
Jun 30, 2024
13.21%
=
0.79
×
0.96
×
22.83%
×
0.76
Mar 31, 2024
13.43%
=
0.80
×
0.96
×
22.81%
×
0.76
Dec 31, 2023
11.81%
=
0.79
×
0.96
×
21.34%
×
0.73
Sep 30, 2023
10.50%
=
0.76
×
0.96
×
19.61%
×
0.73
Jun 30, 2023
9.79%
=
0.76
×
0.96
×
18.57%
×
0.72
Mar 31, 2023
8.50%
=
0.76
×
0.95
×
16.81%
×
0.70
Dec 31, 2022
8.18%
=
0.76
×
0.95
×
16.29%
×
0.69
Sep 30, 2022
9.11%
=
0.80
×
0.95
×
17.96%
×
0.66
Jun 30, 2022
8.33%
=
0.80
×
0.95
×
17.36%
×
0.63
Mar 31, 2022
7.90%
=
0.79
×
0.95
×
17.41%
×
0.61
Dec 31, 2021
7.84%
=
0.79
×
0.94
×
18.09%
×
0.58
Sep 30, 2021
6.37%
=
0.78
×
0.93
×
15.63%
×
0.57
Jun 30, 2021
5.37%
=
0.77
×
0.92
×
14.40%
×
0.53
Mar 31, 2021
4.26%
=
0.76
×
0.89
×
12.49%
×
0.50
Dec 31, 2020
3.83%
=
0.75
×
0.89
×
11.58%
×
0.50
Sep 30, 2020
—
=
—
×
—
×
—
×
—
Jun 30, 2020
—
=
—
×
—
×
—
×
—
Mar 31, 2020
—
=
—
×
—
×
—
×
—
Based on:
10-K (reporting date: 2024-12-31) ,
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) .
The primary reason for the decrease in return on assets ratio (ROA) over Q4 2024 is the decrease in efficiency measured by asset turnover ratio.
Disaggregation of Net Profit Margin
Annual Data
Quarterly Data
Caterpillar Inc., decomposition of net profit margin ratio (quarterly data)
Net Profit Margin
=
Tax Burden
×
Interest Burden
×
EBIT Margin
Dec 31, 2024
17.59%
=
0.80
×
0.96
×
22.71%
Sep 30, 2024
17.15%
=
0.80
×
0.96
×
22.42%
Jun 30, 2024
17.46%
=
0.79
×
0.96
×
22.83%
Mar 31, 2024
17.65%
=
0.80
×
0.96
×
22.81%
Dec 31, 2023
16.18%
=
0.79
×
0.96
×
21.34%
Sep 30, 2023
14.35%
=
0.76
×
0.96
×
19.61%
Jun 30, 2023
13.53%
=
0.76
×
0.96
×
18.57%
Mar 31, 2023
12.10%
=
0.76
×
0.95
×
16.81%
Dec 31, 2022
11.85%
=
0.76
×
0.95
×
16.29%
Sep 30, 2022
13.70%
=
0.80
×
0.95
×
17.96%
Jun 30, 2022
13.19%
=
0.80
×
0.95
×
17.36%
Mar 31, 2022
13.02%
=
0.79
×
0.95
×
17.41%
Dec 31, 2021
13.47%
=
0.79
×
0.94
×
18.09%
Sep 30, 2021
11.28%
=
0.78
×
0.93
×
15.63%
Jun 30, 2021
10.17%
=
0.77
×
0.92
×
14.40%
Mar 31, 2021
8.53%
=
0.76
×
0.89
×
12.49%
Dec 31, 2020
7.68%
=
0.75
×
0.89
×
11.58%
Sep 30, 2020
—
=
—
×
—
×
—
Jun 30, 2020
—
=
—
×
—
×
—
Mar 31, 2020
—
=
—
×
—
×
—
Based on:
10-K (reporting date: 2024-12-31) ,
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) .
The primary reason for the increase in net profit margin ratio over Q4 2024 is the increase in operating profitability measured by EBIT margin ratio.