DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin Quarterly 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
Kinder Morgan Inc., decomposition of ROE (quarterly data)
ROE
=
ROA
×
Financial Leverage
Mar 31, 2020
4.01%
=
1.81%
×
2.22
Dec 31, 2019
6.49%
=
2.95%
×
2.20
Sep 30, 2019
6.17%
=
2.70%
×
2.29
Jun 30, 2019
6.84%
=
3.00%
×
2.28
Mar 31, 2019
4.88%
=
2.15%
×
2.27
Dec 31, 2018
4.78%
=
2.04%
×
2.34
Sep 30, 2018
0.33%
=
0.14%
×
2.36
Jun 30, 2018
-0.76%
=
-0.32%
×
2.37
Mar 31, 2018
0.79%
=
0.34%
×
2.35
Dec 31, 2017
0.54%
=
0.23%
×
2.35
Sep 30, 2017
3.97%
=
1.74%
×
2.28
Jun 30, 2017
2.38%
=
1.04%
×
2.28
Mar 31, 2017
2.40%
=
1.04%
×
2.30
Dec 31, 2016
2.06%
=
0.88%
×
2.33
Sep 30, 2016
-0.57%
=
-0.24%
×
2.36
Jun 30, 2016
0.51%
=
0.21%
×
2.40
Mar 31, 2016
0.40%
=
0.17%
×
2.39
Dec 31, 2015
0.72%
=
0.30%
×
2.39
Sep 30, 2015
—
=
—
×
2.41
Jun 30, 2015
—
=
—
×
2.43
Mar 31, 2015
—
=
—
×
2.46
Based on:
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) ,
10-K (reporting date: 2016-12-31) ,
10-Q (reporting date: 2016-09-30) ,
10-Q (reporting date: 2016-06-30) ,
10-Q (reporting date: 2016-03-31) ,
10-K (reporting date: 2015-12-31) ,
10-Q (reporting date: 2015-09-30) ,
10-Q (reporting date: 2015-06-30) ,
10-Q (reporting date: 2015-03-31) .
The primary reason for the decrease in return on equity ratio (ROE) over Q1 2020 is the decrease in profitability measured by return on assets ratio (ROA).
Three-Component Disaggregation of ROE
Annual Data
Quarterly Data
Kinder Morgan Inc., decomposition of ROE (quarterly data)
ROE
=
Net Profit Margin
×
Asset Turnover
×
Financial Leverage
Mar 31, 2020
4.01%
=
10.31%
×
0.18
×
2.22
Dec 31, 2019
6.49%
=
16.58%
×
0.18
×
2.20
Sep 30, 2019
6.17%
=
15.21%
×
0.18
×
2.29
Jun 30, 2019
6.84%
=
16.50%
×
0.18
×
2.28
Mar 31, 2019
4.88%
=
11.59%
×
0.19
×
2.27
Dec 31, 2018
4.78%
=
11.38%
×
0.18
×
2.34
Sep 30, 2018
0.33%
=
0.78%
×
0.18
×
2.36
Jun 30, 2018
-0.76%
=
-1.82%
×
0.18
×
2.37
Mar 31, 2018
0.79%
=
1.95%
×
0.17
×
2.35
Dec 31, 2017
0.54%
=
1.34%
×
0.17
×
2.35
Sep 30, 2017
3.97%
=
10.38%
×
0.17
×
2.28
Jun 30, 2017
2.38%
=
6.19%
×
0.17
×
2.28
Mar 31, 2017
2.40%
=
6.27%
×
0.17
×
2.30
Dec 31, 2016
2.06%
=
5.42%
×
0.16
×
2.33
Sep 30, 2016
-0.57%
=
-1.47%
×
0.16
×
2.36
Jun 30, 2016
0.51%
=
1.30%
×
0.16
×
2.40
Mar 31, 2016
0.40%
=
0.99%
×
0.17
×
2.39
Dec 31, 2015
0.72%
=
1.76%
×
0.17
×
2.39
Sep 30, 2015
—
=
—
×
—
×
2.41
Jun 30, 2015
—
=
—
×
—
×
2.43
Mar 31, 2015
—
=
—
×
—
×
2.46
Based on:
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) ,
10-K (reporting date: 2016-12-31) ,
10-Q (reporting date: 2016-09-30) ,
10-Q (reporting date: 2016-06-30) ,
10-Q (reporting date: 2016-03-31) ,
10-K (reporting date: 2015-12-31) ,
10-Q (reporting date: 2015-09-30) ,
10-Q (reporting date: 2015-06-30) ,
10-Q (reporting date: 2015-03-31) .
The primary reason for the decrease in return on equity ratio (ROE) over Q1 2020 is the decrease in profitability measured by net profit margin ratio.
Five-Component Disaggregation of ROE
Annual Data
Quarterly Data
Kinder Morgan Inc., decomposition of ROE (quarterly data)
ROE
=
Tax Burden
×
Interest Burden
×
EBIT Margin
×
Asset Turnover
×
Financial Leverage
Mar 31, 2020
4.01%
=
0.62
×
0.55
×
30.41%
×
0.18
×
2.22
Dec 31, 2019
6.49%
=
0.70
×
0.63
×
37.22%
×
0.18
×
2.20
Sep 30, 2019
6.17%
=
0.74
×
0.61
×
34.01%
×
0.18
×
2.29
Jun 30, 2019
6.84%
=
0.74
×
0.63
×
35.40%
×
0.18
×
2.28
Mar 31, 2019
4.88%
=
0.73
×
0.54
×
29.29%
×
0.19
×
2.27
Dec 31, 2018
4.78%
=
0.73
×
0.53
×
29.08%
×
0.18
×
2.34
Sep 30, 2018
0.33%
=
0.06
×
0.48
×
26.01%
×
0.18
×
2.36
Jun 30, 2018
-0.76%
=
-0.19
×
0.42
×
23.48%
×
0.18
×
2.37
Mar 31, 2018
0.79%
=
0.13
×
0.54
×
28.89%
×
0.17
×
2.35
Dec 31, 2017
0.54%
=
0.09
×
0.54
×
28.84%
×
0.17
×
2.35
Sep 30, 2017
3.97%
=
0.64
×
0.55
×
29.73%
×
0.17
×
2.28
Jun 30, 2017
2.38%
=
0.45
×
0.50
×
27.17%
×
0.17
×
2.28
Mar 31, 2017
2.40%
=
0.45
×
0.50
×
27.64%
×
0.17
×
2.30
Dec 31, 2016
2.06%
=
0.44
×
0.47
×
26.28%
×
0.16
×
2.33
Sep 30, 2016
-0.57%
=
-0.33
×
0.24
×
18.80%
×
0.16
×
2.36
Jun 30, 2016
0.51%
=
0.26
×
0.26
×
19.55%
×
0.16
×
2.40
Mar 31, 2016
0.40%
=
0.22
×
0.24
×
18.66%
×
0.17
×
2.39
Dec 31, 2015
0.72%
=
0.31
×
0.28
×
19.91%
×
0.17
×
2.39
Sep 30, 2015
—
=
—
×
—
×
—
×
—
×
2.41
Jun 30, 2015
—
=
—
×
—
×
—
×
—
×
2.43
Mar 31, 2015
—
=
—
×
—
×
—
×
—
×
2.46
Based on:
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) ,
10-K (reporting date: 2016-12-31) ,
10-Q (reporting date: 2016-09-30) ,
10-Q (reporting date: 2016-06-30) ,
10-Q (reporting date: 2016-03-31) ,
10-K (reporting date: 2015-12-31) ,
10-Q (reporting date: 2015-09-30) ,
10-Q (reporting date: 2015-06-30) ,
10-Q (reporting date: 2015-03-31) .
The primary reason for the decrease in return on equity ratio (ROE) over Q1 2020 is the decrease in operating profitability measured by EBIT margin ratio.
Two-Component Disaggregation of ROA
Annual Data
Quarterly Data
Kinder Morgan Inc., decomposition of ROA (quarterly data)
ROA
=
Net Profit Margin
×
Asset Turnover
Mar 31, 2020
1.81%
=
10.31%
×
0.18
Dec 31, 2019
2.95%
=
16.58%
×
0.18
Sep 30, 2019
2.70%
=
15.21%
×
0.18
Jun 30, 2019
3.00%
=
16.50%
×
0.18
Mar 31, 2019
2.15%
=
11.59%
×
0.19
Dec 31, 2018
2.04%
=
11.38%
×
0.18
Sep 30, 2018
0.14%
=
0.78%
×
0.18
Jun 30, 2018
-0.32%
=
-1.82%
×
0.18
Mar 31, 2018
0.34%
=
1.95%
×
0.17
Dec 31, 2017
0.23%
=
1.34%
×
0.17
Sep 30, 2017
1.74%
=
10.38%
×
0.17
Jun 30, 2017
1.04%
=
6.19%
×
0.17
Mar 31, 2017
1.04%
=
6.27%
×
0.17
Dec 31, 2016
0.88%
=
5.42%
×
0.16
Sep 30, 2016
-0.24%
=
-1.47%
×
0.16
Jun 30, 2016
0.21%
=
1.30%
×
0.16
Mar 31, 2016
0.17%
=
0.99%
×
0.17
Dec 31, 2015
0.30%
=
1.76%
×
0.17
Sep 30, 2015
—
=
—
×
—
Jun 30, 2015
—
=
—
×
—
Mar 31, 2015
—
=
—
×
—
Based on:
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) ,
10-K (reporting date: 2016-12-31) ,
10-Q (reporting date: 2016-09-30) ,
10-Q (reporting date: 2016-06-30) ,
10-Q (reporting date: 2016-03-31) ,
10-K (reporting date: 2015-12-31) ,
10-Q (reporting date: 2015-09-30) ,
10-Q (reporting date: 2015-06-30) ,
10-Q (reporting date: 2015-03-31) .
The primary reason for the decrease in return on assets ratio (ROA) over Q1 2020 is the decrease in profitability measured by net profit margin ratio.
Four-Component Disaggregation of ROA
Annual Data
Quarterly Data
Kinder Morgan Inc., decomposition of ROA (quarterly data)
ROA
=
Tax Burden
×
Interest Burden
×
EBIT Margin
×
Asset Turnover
Mar 31, 2020
1.81%
=
0.62
×
0.55
×
30.41%
×
0.18
Dec 31, 2019
2.95%
=
0.70
×
0.63
×
37.22%
×
0.18
Sep 30, 2019
2.70%
=
0.74
×
0.61
×
34.01%
×
0.18
Jun 30, 2019
3.00%
=
0.74
×
0.63
×
35.40%
×
0.18
Mar 31, 2019
2.15%
=
0.73
×
0.54
×
29.29%
×
0.19
Dec 31, 2018
2.04%
=
0.73
×
0.53
×
29.08%
×
0.18
Sep 30, 2018
0.14%
=
0.06
×
0.48
×
26.01%
×
0.18
Jun 30, 2018
-0.32%
=
-0.19
×
0.42
×
23.48%
×
0.18
Mar 31, 2018
0.34%
=
0.13
×
0.54
×
28.89%
×
0.17
Dec 31, 2017
0.23%
=
0.09
×
0.54
×
28.84%
×
0.17
Sep 30, 2017
1.74%
=
0.64
×
0.55
×
29.73%
×
0.17
Jun 30, 2017
1.04%
=
0.45
×
0.50
×
27.17%
×
0.17
Mar 31, 2017
1.04%
=
0.45
×
0.50
×
27.64%
×
0.17
Dec 31, 2016
0.88%
=
0.44
×
0.47
×
26.28%
×
0.16
Sep 30, 2016
-0.24%
=
-0.33
×
0.24
×
18.80%
×
0.16
Jun 30, 2016
0.21%
=
0.26
×
0.26
×
19.55%
×
0.16
Mar 31, 2016
0.17%
=
0.22
×
0.24
×
18.66%
×
0.17
Dec 31, 2015
0.30%
=
0.31
×
0.28
×
19.91%
×
0.17
Sep 30, 2015
—
=
—
×
—
×
—
×
—
Jun 30, 2015
—
=
—
×
—
×
—
×
—
Mar 31, 2015
—
=
—
×
—
×
—
×
—
Based on:
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) ,
10-K (reporting date: 2016-12-31) ,
10-Q (reporting date: 2016-09-30) ,
10-Q (reporting date: 2016-06-30) ,
10-Q (reporting date: 2016-03-31) ,
10-K (reporting date: 2015-12-31) ,
10-Q (reporting date: 2015-09-30) ,
10-Q (reporting date: 2015-06-30) ,
10-Q (reporting date: 2015-03-31) .
The primary reason for the decrease in return on assets ratio (ROA) over Q1 2020 is the decrease in operating profitability measured by EBIT margin ratio.
Disaggregation of Net Profit Margin
Annual Data
Quarterly Data
Kinder Morgan Inc., decomposition of net profit margin ratio (quarterly data)
Net Profit Margin
=
Tax Burden
×
Interest Burden
×
EBIT Margin
Mar 31, 2020
10.31%
=
0.62
×
0.55
×
30.41%
Dec 31, 2019
16.58%
=
0.70
×
0.63
×
37.22%
Sep 30, 2019
15.21%
=
0.74
×
0.61
×
34.01%
Jun 30, 2019
16.50%
=
0.74
×
0.63
×
35.40%
Mar 31, 2019
11.59%
=
0.73
×
0.54
×
29.29%
Dec 31, 2018
11.38%
=
0.73
×
0.53
×
29.08%
Sep 30, 2018
0.78%
=
0.06
×
0.48
×
26.01%
Jun 30, 2018
-1.82%
=
-0.19
×
0.42
×
23.48%
Mar 31, 2018
1.95%
=
0.13
×
0.54
×
28.89%
Dec 31, 2017
1.34%
=
0.09
×
0.54
×
28.84%
Sep 30, 2017
10.38%
=
0.64
×
0.55
×
29.73%
Jun 30, 2017
6.19%
=
0.45
×
0.50
×
27.17%
Mar 31, 2017
6.27%
=
0.45
×
0.50
×
27.64%
Dec 31, 2016
5.42%
=
0.44
×
0.47
×
26.28%
Sep 30, 2016
-1.47%
=
-0.33
×
0.24
×
18.80%
Jun 30, 2016
1.30%
=
0.26
×
0.26
×
19.55%
Mar 31, 2016
0.99%
=
0.22
×
0.24
×
18.66%
Dec 31, 2015
1.76%
=
0.31
×
0.28
×
19.91%
Sep 30, 2015
—
=
—
×
—
×
—
Jun 30, 2015
—
=
—
×
—
×
—
Mar 31, 2015
—
=
—
×
—
×
—
Based on:
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) ,
10-K (reporting date: 2016-12-31) ,
10-Q (reporting date: 2016-09-30) ,
10-Q (reporting date: 2016-06-30) ,
10-Q (reporting date: 2016-03-31) ,
10-K (reporting date: 2015-12-31) ,
10-Q (reporting date: 2015-09-30) ,
10-Q (reporting date: 2015-06-30) ,
10-Q (reporting date: 2015-03-31) .
The primary reason for the decrease in net profit margin ratio over Q1 2020 is the decrease in operating profitability measured by EBIT margin ratio.