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
Generac Holdings Inc., decomposition of ROE (quarterly data)
ROE
=
ROA
×
Financial Leverage
Jun 30, 2022
22.52%
=
9.95%
×
2.26
Mar 31, 2022
22.33%
=
10.00%
×
2.23
Dec 31, 2021
24.87%
=
11.29%
×
2.20
Sep 30, 2021
29.89%
=
12.99%
×
2.30
Jun 30, 2021
31.16%
=
13.92%
×
2.24
Mar 31, 2021
29.85%
=
13.30%
×
2.24
Dec 31, 2020
25.22%
=
10.84%
×
2.33
Sep 30, 2020
24.00%
=
9.93%
×
2.42
Jun 30, 2020
23.30%
=
9.24%
×
2.52
Mar 31, 2020
24.58%
=
9.48%
×
2.59
Dec 31, 2019
24.41%
=
9.45%
×
2.58
Sep 30, 2019
27.61%
=
9.94%
×
2.78
Jun 30, 2019
29.81%
=
10.23%
×
2.91
Mar 31, 2019
31.01%
=
10.08%
×
3.08
Dec 31, 2018
31.33%
=
9.82%
×
3.19
Sep 30, 2018
34.93%
=
10.45%
×
3.34
Jun 30, 2018
33.68%
=
9.41%
×
3.58
Mar 31, 2018
31.61%
=
8.67%
×
3.64
Dec 31, 2017
28.48%
=
7.89%
×
3.61
Sep 30, 2017
—
=
—
×
4.23
Jun 30, 2017
—
=
—
×
4.41
Mar 31, 2017
—
=
—
×
4.44
Based on:
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) ,
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 increase in return on equity ratio (ROE) over Q2 2022 is the increase in financial leverage ratio.
Three-Component Disaggregation of ROE
Annual Data
Quarterly Data
Generac Holdings Inc., decomposition of ROE (quarterly data)
ROE
=
Net Profit Margin
×
Asset Turnover
×
Financial Leverage
Jun 30, 2022
22.52%
=
12.28%
×
0.81
×
2.26
Mar 31, 2022
22.33%
=
12.68%
×
0.79
×
2.23
Dec 31, 2021
24.87%
=
14.73%
×
0.77
×
2.20
Sep 30, 2021
29.89%
=
15.52%
×
0.84
×
2.30
Jun 30, 2021
31.16%
=
16.18%
×
0.86
×
2.24
Mar 31, 2021
29.85%
=
16.16%
×
0.82
×
2.24
Dec 31, 2020
25.22%
=
14.11%
×
0.77
×
2.33
Sep 30, 2020
24.00%
=
12.75%
×
0.78
×
2.42
Jun 30, 2020
23.30%
=
11.55%
×
0.80
×
2.52
Mar 31, 2020
24.58%
=
11.39%
×
0.83
×
2.59
Dec 31, 2019
24.41%
=
11.43%
×
0.83
×
2.58
Sep 30, 2019
27.61%
=
11.85%
×
0.84
×
2.78
Jun 30, 2019
29.81%
=
12.07%
×
0.85
×
2.91
Mar 31, 2019
31.01%
=
11.92%
×
0.85
×
3.08
Dec 31, 2018
31.33%
=
11.77%
×
0.83
×
3.19
Sep 30, 2018
34.93%
=
12.52%
×
0.84
×
3.34
Jun 30, 2018
33.68%
=
11.27%
×
0.83
×
3.58
Mar 31, 2018
31.61%
=
10.35%
×
0.84
×
3.64
Dec 31, 2017
28.48%
=
9.53%
×
0.83
×
3.61
Sep 30, 2017
—
=
—
×
—
×
4.23
Jun 30, 2017
—
=
—
×
—
×
4.41
Mar 31, 2017
—
=
—
×
—
×
4.44
Based on:
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) ,
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 increase in return on equity ratio (ROE) over Q2 2022 is the increase in efficiency measured by asset turnover ratio.
Five-Component Disaggregation of ROE
Annual Data
Quarterly Data
Generac Holdings Inc., decomposition of ROE (quarterly data)
ROE
=
Tax Burden
×
Interest Burden
×
EBIT Margin
×
Asset Turnover
×
Financial Leverage
Jun 30, 2022
22.52%
=
0.81
×
0.95
×
15.99%
×
0.81
×
2.26
Mar 31, 2022
22.33%
=
0.80
×
0.95
×
16.68%
×
0.79
×
2.23
Dec 31, 2021
24.87%
=
0.80
×
0.95
×
19.22%
×
0.77
×
2.20
Sep 30, 2021
29.89%
=
0.78
×
0.96
×
20.90%
×
0.84
×
2.30
Jun 30, 2021
31.16%
=
0.77
×
0.96
×
21.95%
×
0.86
×
2.24
Mar 31, 2021
29.85%
=
0.78
×
0.95
×
21.72%
×
0.82
×
2.24
Dec 31, 2020
25.22%
=
0.78
×
0.93
×
19.42%
×
0.77
×
2.33
Sep 30, 2020
24.00%
=
0.80
×
0.91
×
17.44%
×
0.78
×
2.42
Jun 30, 2020
23.30%
=
0.81
×
0.89
×
16.03%
×
0.80
×
2.52
Mar 31, 2020
24.58%
=
0.80
×
0.89
×
16.00%
×
0.83
×
2.59
Dec 31, 2019
24.41%
=
0.79
×
0.88
×
16.37%
×
0.83
×
2.58
Sep 30, 2019
27.61%
=
0.78
×
0.89
×
17.15%
×
0.84
×
2.78
Jun 30, 2019
29.81%
=
0.78
×
0.89
×
17.43%
×
0.85
×
2.91
Mar 31, 2019
31.01%
=
0.77
×
0.89
×
17.39%
×
0.85
×
3.08
Dec 31, 2018
31.33%
=
0.77
×
0.88
×
17.25%
×
0.83
×
3.19
Sep 30, 2018
34.93%
=
0.83
×
0.88
×
17.23%
×
0.84
×
3.34
Jun 30, 2018
33.68%
=
0.80
×
0.86
×
16.33%
×
0.83
×
3.58
Mar 31, 2018
31.61%
=
0.79
×
0.84
×
15.45%
×
0.84
×
3.64
Dec 31, 2017
28.48%
=
0.79
×
0.83
×
14.69%
×
0.83
×
3.61
Sep 30, 2017
—
=
—
×
—
×
—
×
—
×
4.23
Jun 30, 2017
—
=
—
×
—
×
—
×
—
×
4.41
Mar 31, 2017
—
=
—
×
—
×
—
×
—
×
4.44
Based on:
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) ,
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 increase in return on equity ratio (ROE) over Q2 2022 is the increase in efficiency measured by asset turnover ratio.
Two-Component Disaggregation of ROA
Annual Data
Quarterly Data
Generac Holdings Inc., decomposition of ROA (quarterly data)
ROA
=
Net Profit Margin
×
Asset Turnover
Jun 30, 2022
9.95%
=
12.28%
×
0.81
Mar 31, 2022
10.00%
=
12.68%
×
0.79
Dec 31, 2021
11.29%
=
14.73%
×
0.77
Sep 30, 2021
12.99%
=
15.52%
×
0.84
Jun 30, 2021
13.92%
=
16.18%
×
0.86
Mar 31, 2021
13.30%
=
16.16%
×
0.82
Dec 31, 2020
10.84%
=
14.11%
×
0.77
Sep 30, 2020
9.93%
=
12.75%
×
0.78
Jun 30, 2020
9.24%
=
11.55%
×
0.80
Mar 31, 2020
9.48%
=
11.39%
×
0.83
Dec 31, 2019
9.45%
=
11.43%
×
0.83
Sep 30, 2019
9.94%
=
11.85%
×
0.84
Jun 30, 2019
10.23%
=
12.07%
×
0.85
Mar 31, 2019
10.08%
=
11.92%
×
0.85
Dec 31, 2018
9.82%
=
11.77%
×
0.83
Sep 30, 2018
10.45%
=
12.52%
×
0.84
Jun 30, 2018
9.41%
=
11.27%
×
0.83
Mar 31, 2018
8.67%
=
10.35%
×
0.84
Dec 31, 2017
7.89%
=
9.53%
×
0.83
Sep 30, 2017
—
=
—
×
—
Jun 30, 2017
—
=
—
×
—
Mar 31, 2017
—
=
—
×
—
Based on:
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) ,
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 Q2 2022 is the decrease in profitability measured by net profit margin ratio.
Four-Component Disaggregation of ROA
Annual Data
Quarterly Data
Generac Holdings Inc., decomposition of ROA (quarterly data)
ROA
=
Tax Burden
×
Interest Burden
×
EBIT Margin
×
Asset Turnover
Jun 30, 2022
9.95%
=
0.81
×
0.95
×
15.99%
×
0.81
Mar 31, 2022
10.00%
=
0.80
×
0.95
×
16.68%
×
0.79
Dec 31, 2021
11.29%
=
0.80
×
0.95
×
19.22%
×
0.77
Sep 30, 2021
12.99%
=
0.78
×
0.96
×
20.90%
×
0.84
Jun 30, 2021
13.92%
=
0.77
×
0.96
×
21.95%
×
0.86
Mar 31, 2021
13.30%
=
0.78
×
0.95
×
21.72%
×
0.82
Dec 31, 2020
10.84%
=
0.78
×
0.93
×
19.42%
×
0.77
Sep 30, 2020
9.93%
=
0.80
×
0.91
×
17.44%
×
0.78
Jun 30, 2020
9.24%
=
0.81
×
0.89
×
16.03%
×
0.80
Mar 31, 2020
9.48%
=
0.80
×
0.89
×
16.00%
×
0.83
Dec 31, 2019
9.45%
=
0.79
×
0.88
×
16.37%
×
0.83
Sep 30, 2019
9.94%
=
0.78
×
0.89
×
17.15%
×
0.84
Jun 30, 2019
10.23%
=
0.78
×
0.89
×
17.43%
×
0.85
Mar 31, 2019
10.08%
=
0.77
×
0.89
×
17.39%
×
0.85
Dec 31, 2018
9.82%
=
0.77
×
0.88
×
17.25%
×
0.83
Sep 30, 2018
10.45%
=
0.83
×
0.88
×
17.23%
×
0.84
Jun 30, 2018
9.41%
=
0.80
×
0.86
×
16.33%
×
0.83
Mar 31, 2018
8.67%
=
0.79
×
0.84
×
15.45%
×
0.84
Dec 31, 2017
7.89%
=
0.79
×
0.83
×
14.69%
×
0.83
Sep 30, 2017
—
=
—
×
—
×
—
×
—
Jun 30, 2017
—
=
—
×
—
×
—
×
—
Mar 31, 2017
—
=
—
×
—
×
—
×
—
Based on:
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) ,
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 Q2 2022 is the decrease in operating profitability measured by EBIT margin ratio.
Disaggregation of Net Profit Margin
Annual Data
Quarterly Data
Generac Holdings Inc., decomposition of net profit margin ratio (quarterly data)
Net Profit Margin
=
Tax Burden
×
Interest Burden
×
EBIT Margin
Jun 30, 2022
12.28%
=
0.81
×
0.95
×
15.99%
Mar 31, 2022
12.68%
=
0.80
×
0.95
×
16.68%
Dec 31, 2021
14.73%
=
0.80
×
0.95
×
19.22%
Sep 30, 2021
15.52%
=
0.78
×
0.96
×
20.90%
Jun 30, 2021
16.18%
=
0.77
×
0.96
×
21.95%
Mar 31, 2021
16.16%
=
0.78
×
0.95
×
21.72%
Dec 31, 2020
14.11%
=
0.78
×
0.93
×
19.42%
Sep 30, 2020
12.75%
=
0.80
×
0.91
×
17.44%
Jun 30, 2020
11.55%
=
0.81
×
0.89
×
16.03%
Mar 31, 2020
11.39%
=
0.80
×
0.89
×
16.00%
Dec 31, 2019
11.43%
=
0.79
×
0.88
×
16.37%
Sep 30, 2019
11.85%
=
0.78
×
0.89
×
17.15%
Jun 30, 2019
12.07%
=
0.78
×
0.89
×
17.43%
Mar 31, 2019
11.92%
=
0.77
×
0.89
×
17.39%
Dec 31, 2018
11.77%
=
0.77
×
0.88
×
17.25%
Sep 30, 2018
12.52%
=
0.83
×
0.88
×
17.23%
Jun 30, 2018
11.27%
=
0.80
×
0.86
×
16.33%
Mar 31, 2018
10.35%
=
0.79
×
0.84
×
15.45%
Dec 31, 2017
9.53%
=
0.79
×
0.83
×
14.69%
Sep 30, 2017
—
=
—
×
—
×
—
Jun 30, 2017
—
=
—
×
—
×
—
Mar 31, 2017
—
=
—
×
—
×
—
Based on:
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) ,
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 net profit margin ratio over Q2 2022 is the decrease in operating profitability measured by EBIT margin ratio.