Stock Analysis on Net
Stock Analysis on Net

Devon Energy Corp. (NYSE:DVN)

This company has been moved to the archive! The financial data has not been updated since November 8, 2023.

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

Devon Energy Corp., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Sep 30, 2023 32.61% = 15.66% × 2.08
Jun 30, 2023 43.36% = 20.46% × 2.12
Mar 31, 2023 54.85% = 25.71% × 2.13
Dec 31, 2022 53.86% = 25.36% × 2.12
Sep 30, 2022 58.13% = 26.83% × 2.17
Jun 30, 2022 52.18% = 22.70% × 2.30
Mar 31, 2022 38.59% = 16.48% × 2.34
Dec 31, 2021 30.37% = 13.38% × 2.27
Sep 30, 2021 13.50% = 5.72% × 2.36
Jun 30, 2021 3.27% = 1.37% × 2.39
Mar 31, 2021 -7.79% = -3.18% × 2.45
Dec 31, 2020 -92.89% = -27.04% × 3.44
Sep 30, 2020 -106.52% = -31.18% × 3.42
Jun 30, 2020 -93.55% = -29.15% × 3.21
Mar 31, 2020 -47.31% = -16.64% × 2.84
Dec 31, 2019 -6.12% = -2.59% × 2.36
Sep 30, 2019 21.95% = 9.98% × 2.20
Jun 30, 2019 55.25% = 23.21% × 2.38
Mar 31, 2019 37.47% = 16.29% × 2.30
Dec 31, 2018 33.36% = 15.66% × 2.13
Sep 30, 2018 — = — × 2.27
Jun 30, 2018 — = — × 3.64
Mar 31, 2018 — = — × 3.29

Based on: 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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2023 is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Devon Energy Corp., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Sep 30, 2023 32.61% = 24.63% × 0.64 × 2.08
Jun 30, 2023 43.36% = 28.10% × 0.73 × 2.12
Mar 31, 2023 54.85% = 31.39% × 0.82 × 2.13
Dec 31, 2022 53.86% = 31.38% × 0.81 × 2.12
Sep 30, 2022 58.13% = 32.53% × 0.82 × 2.17
Jun 30, 2022 52.18% = 30.15% × 0.75 × 2.30
Mar 31, 2022 38.59% = 25.18% × 0.65 × 2.34
Dec 31, 2021 30.37% = 23.05% × 0.58 × 2.27
Sep 30, 2021 13.50% = 13.50% × 0.42 × 2.36
Jun 30, 2021 3.27% = 4.21% × 0.33 × 2.39
Mar 31, 2021 -7.79% = -14.46% × 0.22 × 2.45
Dec 31, 2020 -92.89% = -55.51% × 0.49 × 3.44
Sep 30, 2020 -106.52% = -62.68% × 0.50 × 3.42
Jun 30, 2020 -93.55% = -51.91% × 0.56 × 3.21
Mar 31, 2020 -47.31% = -25.65% × 0.65 × 2.84
Dec 31, 2019 -6.12% = -5.71% × 0.45 × 2.36
Sep 30, 2019 21.95% = 17.22% × 0.58 × 2.20
Jun 30, 2019 55.25% = 42.13% × 0.55 × 2.38
Mar 31, 2019 37.47% = 30.62% × 0.53 × 2.30
Dec 31, 2018 33.36% = 28.54% × 0.55 × 2.13
Sep 30, 2018 — = — × — × 2.27
Jun 30, 2018 — = — × — × 3.64
Mar 31, 2018 — = — × — × 3.29

Based on: 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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2023 is the decrease in efficiency measured by asset turnover ratio.

Two-Component Disaggregation of ROA

Devon Energy Corp., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Sep 30, 2023 15.66% = 24.63% × 0.64
Jun 30, 2023 20.46% = 28.10% × 0.73
Mar 31, 2023 25.71% = 31.39% × 0.82
Dec 31, 2022 25.36% = 31.38% × 0.81
Sep 30, 2022 26.83% = 32.53% × 0.82
Jun 30, 2022 22.70% = 30.15% × 0.75
Mar 31, 2022 16.48% = 25.18% × 0.65
Dec 31, 2021 13.38% = 23.05% × 0.58
Sep 30, 2021 5.72% = 13.50% × 0.42
Jun 30, 2021 1.37% = 4.21% × 0.33
Mar 31, 2021 -3.18% = -14.46% × 0.22
Dec 31, 2020 -27.04% = -55.51% × 0.49
Sep 30, 2020 -31.18% = -62.68% × 0.50
Jun 30, 2020 -29.15% = -51.91% × 0.56
Mar 31, 2020 -16.64% = -25.65% × 0.65
Dec 31, 2019 -2.59% = -5.71% × 0.45
Sep 30, 2019 9.98% = 17.22% × 0.58
Jun 30, 2019 23.21% = 42.13% × 0.55
Mar 31, 2019 16.29% = 30.62% × 0.53
Dec 31, 2018 15.66% = 28.54% × 0.55
Sep 30, 2018 — = — × —
Jun 30, 2018 — = — × —
Mar 31, 2018 — = — × —

Based on: 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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q3 2023 is the decrease in asset turnover ratio.