Stock Analysis on Net
Stock Analysis on Net

Edwards Lifesciences Corp. (NYSE:EW)

This company has been moved to the archive! The financial data has not been updated since February 14, 2022.

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

Edwards Lifesciences Corp., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2021 25.76% = 17.68% × 1.46
Sep 30, 2021 26.66% = 18.10% × 1.47
Jun 30, 2021 28.49% = 19.09% × 1.49
Mar 31, 2021 18.27% = 11.80% × 1.55
Dec 31, 2020 18.00% = 11.38% × 1.58
Sep 30, 2020 18.86% = 11.68% × 1.62
Jun 30, 2020 19.37% = 11.58% × 1.67
Mar 31, 2020 28.40% = 18.23% × 1.56
Dec 31, 2019 25.24% = 16.14% × 1.56
Sep 30, 2019 20.28% = 12.97% × 1.56
Jun 30, 2019 20.71% = 13.01% × 1.59
Mar 31, 2019 22.20% = 13.99% × 1.59
Dec 31, 2018 23.00% = 13.57% × 1.70
Sep 30, 2018 21.19% = 11.96% × 1.77
Jun 30, 2018 20.75% = 11.55% × 1.80
Mar 31, 2018 17.25% = 9.61% × 1.79
Dec 31, 2017 19.74% = 10.25% × 1.93
Sep 30, 2017 — = — × 1.74
Jun 30, 2017 — = — × 1.75
Mar 31, 2017 — = — × 1.74

Based on: 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), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q4 2021 is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Edwards Lifesciences Corp., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2021 25.76% = 28.73% × 0.62 × 1.46
Sep 30, 2021 26.66% = 29.00% × 0.62 × 1.47
Jun 30, 2021 28.49% = 29.69% × 0.64 × 1.49
Mar 31, 2021 18.27% = 19.02% × 0.62 × 1.55
Dec 31, 2020 18.00% = 18.77% × 0.61 × 1.58
Sep 30, 2020 18.86% = 18.18% × 0.64 × 1.62
Jun 30, 2020 19.37% = 17.21% × 0.67 × 1.67
Mar 31, 2020 28.40% = 24.71% × 0.74 × 1.56
Dec 31, 2019 25.24% = 24.08% × 0.67 × 1.56
Sep 30, 2019 20.28% = 18.64% × 0.70 × 1.56
Jun 30, 2019 20.71% = 18.29% × 0.71 × 1.59
Mar 31, 2019 22.20% = 20.03% × 0.70 × 1.59
Dec 31, 2018 23.00% = 19.40% × 0.70 × 1.70
Sep 30, 2018 21.19% = 19.61% × 0.61 × 1.77
Jun 30, 2018 20.75% = 18.50% × 0.62 × 1.80
Mar 31, 2018 17.25% = 16.25% × 0.59 × 1.79
Dec 31, 2017 19.74% = 16.99% × 0.60 × 1.93
Sep 30, 2017 — = — × — × 1.74
Jun 30, 2017 — = — × — × 1.75
Mar 31, 2017 — = — × — × 1.74

Based on: 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), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q4 2021 is the decrease in efficiency measured by asset turnover ratio.

Two-Component Disaggregation of ROA

Edwards Lifesciences Corp., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2021 17.68% = 28.73% × 0.62
Sep 30, 2021 18.10% = 29.00% × 0.62
Jun 30, 2021 19.09% = 29.69% × 0.64
Mar 31, 2021 11.80% = 19.02% × 0.62
Dec 31, 2020 11.38% = 18.77% × 0.61
Sep 30, 2020 11.68% = 18.18% × 0.64
Jun 30, 2020 11.58% = 17.21% × 0.67
Mar 31, 2020 18.23% = 24.71% × 0.74
Dec 31, 2019 16.14% = 24.08% × 0.67
Sep 30, 2019 12.97% = 18.64% × 0.70
Jun 30, 2019 13.01% = 18.29% × 0.71
Mar 31, 2019 13.99% = 20.03% × 0.70
Dec 31, 2018 13.57% = 19.40% × 0.70
Sep 30, 2018 11.96% = 19.61% × 0.61
Jun 30, 2018 11.55% = 18.50% × 0.62
Mar 31, 2018 9.61% = 16.25% × 0.59
Dec 31, 2017 10.25% = 16.99% × 0.60
Sep 30, 2017 — = — × —
Jun 30, 2017 — = — × —
Mar 31, 2017 — = — × —

Based on: 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), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q4 2021 is the decrease in asset turnover ratio.