Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.
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- Income Statement
- Statement of Comprehensive Income
- Common-Size Balance Sheet: Assets
- Analysis of Reportable Segments
- Common Stock Valuation Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
- Price to Earnings (P/E) since 2005
- Analysis of Debt
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Two-Component Disaggregation of ROE
ROE | = | ROA | × | Financial Leverage | |
---|---|---|---|---|---|
Sep 30, 2019 | = | × | |||
Sep 30, 2018 | = | × | |||
Sep 30, 2017 | = | × | |||
Sep 30, 2016 | = | × | |||
Sep 30, 2015 | = | × | |||
Sep 30, 2014 | = | × |
Based on: 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), 10-K (reporting date: 2014-09-30).
The primary reason for the increase in return on equity ratio (ROE) over 2019 year is the increase in financial leverage ratio.
Three-Component Disaggregation of ROE
ROE | = | Net Profit Margin | × | Asset Turnover | × | Financial Leverage | |
---|---|---|---|---|---|---|---|
Sep 30, 2019 | = | × | × | ||||
Sep 30, 2018 | = | × | × | ||||
Sep 30, 2017 | = | × | × | ||||
Sep 30, 2016 | = | × | × | ||||
Sep 30, 2015 | = | × | × | ||||
Sep 30, 2014 | = | × | × |
Based on: 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), 10-K (reporting date: 2014-09-30).
The primary reason for the increase in return on equity ratio (ROE) over 2019 year is the increase in financial leverage ratio.
Five-Component Disaggregation of ROE
Based on: 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), 10-K (reporting date: 2014-09-30).
The primary reason for the increase in return on equity ratio (ROE) over 2019 year is the increase in financial leverage ratio.
Two-Component Disaggregation of ROA
ROA | = | Net Profit Margin | × | Asset Turnover | |
---|---|---|---|---|---|
Sep 30, 2019 | = | × | |||
Sep 30, 2018 | = | × | |||
Sep 30, 2017 | = | × | |||
Sep 30, 2016 | = | × | |||
Sep 30, 2015 | = | × | |||
Sep 30, 2014 | = | × |
Based on: 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), 10-K (reporting date: 2014-09-30).
The primary reason for the increase in return on assets ratio (ROA) over 2019 year is the increase in asset turnover ratio.
Four-Component Disaggregation of ROA
ROA | = | Tax Burden | × | Interest Burden | × | EBIT Margin | × | Asset Turnover | |
---|---|---|---|---|---|---|---|---|---|
Sep 30, 2019 | = | × | × | × | |||||
Sep 30, 2018 | = | × | × | × | |||||
Sep 30, 2017 | = | × | × | × | |||||
Sep 30, 2016 | = | × | × | × | |||||
Sep 30, 2015 | = | × | × | × | |||||
Sep 30, 2014 | = | × | × | × |
Based on: 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), 10-K (reporting date: 2014-09-30).
The primary reason for the increase in return on assets ratio (ROA) over 2019 year is the increase in efficiency measured by asset turnover ratio.
Disaggregation of Net Profit Margin
Net Profit Margin | = | Tax Burden | × | Interest Burden | × | EBIT Margin | |
---|---|---|---|---|---|---|---|
Sep 30, 2019 | = | × | × | ||||
Sep 30, 2018 | = | × | × | ||||
Sep 30, 2017 | = | × | × | ||||
Sep 30, 2016 | = | × | × | ||||
Sep 30, 2015 | = | × | × | ||||
Sep 30, 2014 | = | × | × |
Based on: 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), 10-K (reporting date: 2014-09-30).
The primary reason for the decrease in net profit margin ratio over 2019 year is the decrease in effect of taxes measured by tax burden ratio.