Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.
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- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Long-term (Investment) Activity Ratios
- Analysis of Reportable Segments
- Capital Asset Pricing Model (CAPM)
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Operating Profit Margin since 2005
- Current Ratio since 2005
- Analysis of Debt
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Two-Component Disaggregation of ROE
ROE | = | ROA | × | Financial Leverage | |
---|---|---|---|---|---|
Oct 31, 2018 | = | × | |||
Oct 31, 2017 | = | × | |||
Oct 31, 2016 | = | × | |||
Oct 31, 2015 | = | × | |||
Oct 31, 2014 | = | × | |||
Oct 31, 2013 | = | × |
Based on: 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31).
Three-Component Disaggregation of ROE
ROE | = | Net Profit Margin | × | Asset Turnover | × | Financial Leverage | |
---|---|---|---|---|---|---|---|
Oct 31, 2018 | = | × | × | ||||
Oct 31, 2017 | = | × | × | ||||
Oct 31, 2016 | = | × | × | ||||
Oct 31, 2015 | = | × | × | ||||
Oct 31, 2014 | = | × | × | ||||
Oct 31, 2013 | = | × | × |
Based on: 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31).
Five-Component Disaggregation of ROE
Based on: 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31).
Two-Component Disaggregation of ROA
ROA | = | Net Profit Margin | × | Asset Turnover | |
---|---|---|---|---|---|
Oct 31, 2018 | = | × | |||
Oct 31, 2017 | = | × | |||
Oct 31, 2016 | = | × | |||
Oct 31, 2015 | = | × | |||
Oct 31, 2014 | = | × | |||
Oct 31, 2013 | = | × |
Based on: 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31).
The primary reason for the increase in return on assets ratio (ROA) over 2018 year is the increase in profitability measured by net profit margin ratio.
Four-Component Disaggregation of ROA
ROA | = | Tax Burden | × | Interest Burden | × | EBIT Margin | × | Asset Turnover | |
---|---|---|---|---|---|---|---|---|---|
Oct 31, 2018 | = | × | × | × | |||||
Oct 31, 2017 | = | × | × | × | |||||
Oct 31, 2016 | = | × | × | × | |||||
Oct 31, 2015 | = | × | × | × | |||||
Oct 31, 2014 | = | × | × | × | |||||
Oct 31, 2013 | = | × | × | × |
Based on: 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31).
The primary reason for the increase in return on assets ratio (ROA) over 2018 year is the increase in effect of taxes measured by tax burden ratio.
Disaggregation of Net Profit Margin
Net Profit Margin | = | Tax Burden | × | Interest Burden | × | EBIT Margin | |
---|---|---|---|---|---|---|---|
Oct 31, 2018 | = | × | × | ||||
Oct 31, 2017 | = | × | × | ||||
Oct 31, 2016 | = | × | × | ||||
Oct 31, 2015 | = | × | × | ||||
Oct 31, 2014 | = | × | × | ||||
Oct 31, 2013 | = | × | × |
Based on: 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31).
The primary reason for the increase in net profit margin ratio over 2018 year is the increase in effect of taxes measured by tax burden ratio.