DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data
Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.
Two-Component Disaggregation of ROE
McDonald’s Corp., decomposition of ROE (quarterly data)
|
|
|
|
|
|
|
ROE |
= |
ROA |
× |
Financial Leverage |
Sep 30, 2024 |
— |
= |
14.68% |
× |
— |
Jun 30, 2024 |
— |
= |
15.44% |
× |
— |
Mar 31, 2024 |
— |
= |
16.06% |
× |
— |
Dec 31, 2023 |
— |
= |
15.08% |
× |
— |
Sep 30, 2023 |
— |
= |
16.00% |
× |
— |
Jun 30, 2023 |
— |
= |
15.86% |
× |
— |
Mar 31, 2023 |
— |
= |
13.22% |
× |
— |
Dec 31, 2022 |
— |
= |
12.25% |
× |
— |
Sep 30, 2022 |
— |
= |
12.19% |
× |
— |
Jun 30, 2022 |
— |
= |
12.35% |
× |
— |
Mar 31, 2022 |
— |
= |
13.98% |
× |
— |
Dec 31, 2021 |
— |
= |
14.01% |
× |
— |
Sep 30, 2021 |
— |
= |
13.81% |
× |
— |
Jun 30, 2021 |
— |
= |
13.29% |
× |
— |
Mar 31, 2021 |
— |
= |
10.10% |
× |
— |
Dec 31, 2020 |
— |
= |
8.99% |
× |
— |
Sep 30, 2020 |
— |
= |
9.72% |
× |
— |
Jun 30, 2020 |
— |
= |
9.55% |
× |
— |
Mar 31, 2020 |
— |
= |
11.48% |
× |
— |
Dec 31, 2019 |
— |
= |
12.68% |
× |
— |
Sep 30, 2019 |
— |
= |
— |
× |
— |
Jun 30, 2019 |
— |
= |
— |
× |
— |
Mar 31, 2019 |
— |
= |
— |
× |
— |
Based on:
10-Q (reporting date: 2024-09-30),
10-Q (reporting date: 2024-06-30),
10-Q (reporting date: 2024-03-31),
10-K (reporting date: 2023-12-31),
10-Q (reporting date: 2023-09-30),
10-Q (reporting date: 2023-06-30),
10-Q (reporting date: 2023-03-31),
10-K (reporting date: 2022-12-31),
10-Q (reporting date: 2022-09-30),
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).
Three-Component Disaggregation of ROE
McDonald’s Corp., decomposition of ROE (quarterly data)
|
|
|
|
|
|
|
|
|
ROE |
= |
Net Profit Margin |
× |
Asset Turnover |
× |
Financial Leverage |
Sep 30, 2024 |
— |
= |
31.79% |
× |
0.46 |
× |
— |
Jun 30, 2024 |
— |
= |
32.25% |
× |
0.48 |
× |
— |
Mar 31, 2024 |
— |
= |
33.36% |
× |
0.48 |
× |
— |
Dec 31, 2023 |
— |
= |
33.22% |
× |
0.45 |
× |
— |
Sep 30, 2023 |
— |
= |
33.31% |
× |
0.48 |
× |
— |
Jun 30, 2023 |
— |
= |
33.06% |
× |
0.48 |
× |
— |
Mar 31, 2023 |
— |
= |
29.36% |
× |
0.45 |
× |
— |
Dec 31, 2022 |
— |
= |
26.65% |
× |
0.46 |
× |
— |
Sep 30, 2022 |
— |
= |
25.41% |
× |
0.48 |
× |
— |
Jun 30, 2022 |
— |
= |
25.77% |
× |
0.48 |
× |
— |
Mar 31, 2022 |
— |
= |
29.93% |
× |
0.47 |
× |
— |
Dec 31, 2021 |
— |
= |
32.49% |
× |
0.43 |
× |
— |
Sep 30, 2021 |
— |
= |
32.33% |
× |
0.43 |
× |
— |
Jun 30, 2021 |
— |
= |
31.72% |
× |
0.42 |
× |
— |
Mar 31, 2021 |
— |
= |
26.31% |
× |
0.38 |
× |
— |
Dec 31, 2020 |
— |
= |
24.63% |
× |
0.36 |
× |
— |
Sep 30, 2020 |
— |
= |
25.60% |
× |
0.38 |
× |
— |
Jun 30, 2020 |
— |
= |
24.78% |
× |
0.39 |
× |
— |
Mar 31, 2020 |
— |
= |
27.86% |
× |
0.41 |
× |
— |
Dec 31, 2019 |
— |
= |
28.59% |
× |
0.44 |
× |
— |
Sep 30, 2019 |
— |
= |
— |
× |
— |
× |
— |
Jun 30, 2019 |
— |
= |
— |
× |
— |
× |
— |
Mar 31, 2019 |
— |
= |
— |
× |
— |
× |
— |
Based on:
10-Q (reporting date: 2024-09-30),
10-Q (reporting date: 2024-06-30),
10-Q (reporting date: 2024-03-31),
10-K (reporting date: 2023-12-31),
10-Q (reporting date: 2023-09-30),
10-Q (reporting date: 2023-06-30),
10-Q (reporting date: 2023-03-31),
10-K (reporting date: 2022-12-31),
10-Q (reporting date: 2022-09-30),
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).
Five-Component Disaggregation of ROE
McDonald’s Corp., decomposition of ROE (quarterly data)
|
|
|
|
|
|
|
|
|
|
|
|
|
ROE |
= |
Tax Burden |
× |
Interest Burden |
× |
EBIT Margin |
× |
Asset Turnover |
× |
Financial Leverage |
Sep 30, 2024 |
— |
= |
0.80 |
× |
0.87 |
× |
45.52% |
× |
0.46 |
× |
— |
Jun 30, 2024 |
— |
= |
0.80 |
× |
0.88 |
× |
46.00% |
× |
0.48 |
× |
— |
Mar 31, 2024 |
— |
= |
0.81 |
× |
0.88 |
× |
46.84% |
× |
0.48 |
× |
— |
Dec 31, 2023 |
— |
= |
0.80 |
× |
0.89 |
× |
46.61% |
× |
0.45 |
× |
— |
Sep 30, 2023 |
— |
= |
0.81 |
× |
0.89 |
× |
46.65% |
× |
0.48 |
× |
— |
Jun 30, 2023 |
— |
= |
0.80 |
× |
0.89 |
× |
46.49% |
× |
0.48 |
× |
— |
Mar 31, 2023 |
— |
= |
0.80 |
× |
0.87 |
× |
41.86% |
× |
0.45 |
× |
— |
Dec 31, 2022 |
— |
= |
0.79 |
× |
0.87 |
× |
38.96% |
× |
0.46 |
× |
— |
Sep 30, 2022 |
— |
= |
0.78 |
× |
0.87 |
× |
37.71% |
× |
0.48 |
× |
— |
Jun 30, 2022 |
— |
= |
0.78 |
× |
0.87 |
× |
37.79% |
× |
0.48 |
× |
— |
Mar 31, 2022 |
— |
= |
0.82 |
× |
0.88 |
× |
41.62% |
× |
0.47 |
× |
— |
Dec 31, 2021 |
— |
= |
0.83 |
× |
0.89 |
× |
44.41% |
× |
0.43 |
× |
— |
Sep 30, 2021 |
— |
= |
0.82 |
× |
0.88 |
× |
44.61% |
× |
0.43 |
× |
— |
Jun 30, 2021 |
— |
= |
0.82 |
× |
0.87 |
× |
44.11% |
× |
0.42 |
× |
— |
Mar 31, 2021 |
— |
= |
0.78 |
× |
0.84 |
× |
40.20% |
× |
0.38 |
× |
— |
Dec 31, 2020 |
— |
= |
0.77 |
× |
0.83 |
× |
38.31% |
× |
0.36 |
× |
— |
Sep 30, 2020 |
— |
= |
0.78 |
× |
0.84 |
× |
39.13% |
× |
0.38 |
× |
— |
Jun 30, 2020 |
— |
= |
0.76 |
× |
0.84 |
× |
38.61% |
× |
0.39 |
× |
— |
Mar 31, 2020 |
— |
= |
0.76 |
× |
0.87 |
× |
42.04% |
× |
0.41 |
× |
— |
Dec 31, 2019 |
— |
= |
0.75 |
× |
0.88 |
× |
43.37% |
× |
0.44 |
× |
— |
Sep 30, 2019 |
— |
= |
— |
× |
— |
× |
— |
× |
— |
× |
— |
Jun 30, 2019 |
— |
= |
— |
× |
— |
× |
— |
× |
— |
× |
— |
Mar 31, 2019 |
— |
= |
— |
× |
— |
× |
— |
× |
— |
× |
— |
Based on:
10-Q (reporting date: 2024-09-30),
10-Q (reporting date: 2024-06-30),
10-Q (reporting date: 2024-03-31),
10-K (reporting date: 2023-12-31),
10-Q (reporting date: 2023-09-30),
10-Q (reporting date: 2023-06-30),
10-Q (reporting date: 2023-03-31),
10-K (reporting date: 2022-12-31),
10-Q (reporting date: 2022-09-30),
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).
Two-Component Disaggregation of ROA
McDonald’s Corp., decomposition of ROA (quarterly data)
|
|
|
|
|
|
|
ROA |
= |
Net Profit Margin |
× |
Asset Turnover |
Sep 30, 2024 |
14.68% |
= |
31.79% |
× |
0.46 |
Jun 30, 2024 |
15.44% |
= |
32.25% |
× |
0.48 |
Mar 31, 2024 |
16.06% |
= |
33.36% |
× |
0.48 |
Dec 31, 2023 |
15.08% |
= |
33.22% |
× |
0.45 |
Sep 30, 2023 |
16.00% |
= |
33.31% |
× |
0.48 |
Jun 30, 2023 |
15.86% |
= |
33.06% |
× |
0.48 |
Mar 31, 2023 |
13.22% |
= |
29.36% |
× |
0.45 |
Dec 31, 2022 |
12.25% |
= |
26.65% |
× |
0.46 |
Sep 30, 2022 |
12.19% |
= |
25.41% |
× |
0.48 |
Jun 30, 2022 |
12.35% |
= |
25.77% |
× |
0.48 |
Mar 31, 2022 |
13.98% |
= |
29.93% |
× |
0.47 |
Dec 31, 2021 |
14.01% |
= |
32.49% |
× |
0.43 |
Sep 30, 2021 |
13.81% |
= |
32.33% |
× |
0.43 |
Jun 30, 2021 |
13.29% |
= |
31.72% |
× |
0.42 |
Mar 31, 2021 |
10.10% |
= |
26.31% |
× |
0.38 |
Dec 31, 2020 |
8.99% |
= |
24.63% |
× |
0.36 |
Sep 30, 2020 |
9.72% |
= |
25.60% |
× |
0.38 |
Jun 30, 2020 |
9.55% |
= |
24.78% |
× |
0.39 |
Mar 31, 2020 |
11.48% |
= |
27.86% |
× |
0.41 |
Dec 31, 2019 |
12.68% |
= |
28.59% |
× |
0.44 |
Sep 30, 2019 |
— |
= |
— |
× |
— |
Jun 30, 2019 |
— |
= |
— |
× |
— |
Mar 31, 2019 |
— |
= |
— |
× |
— |
Based on:
10-Q (reporting date: 2024-09-30),
10-Q (reporting date: 2024-06-30),
10-Q (reporting date: 2024-03-31),
10-K (reporting date: 2023-12-31),
10-Q (reporting date: 2023-09-30),
10-Q (reporting date: 2023-06-30),
10-Q (reporting date: 2023-03-31),
10-K (reporting date: 2022-12-31),
10-Q (reporting date: 2022-09-30),
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).
The primary reason for the decrease in return on assets ratio (ROA) over Q3 2024 is the decrease in asset turnover ratio.
Four-Component Disaggregation of ROA
McDonald’s Corp., decomposition of ROA (quarterly data)
|
|
|
|
|
|
|
|
|
|
|
ROA |
= |
Tax Burden |
× |
Interest Burden |
× |
EBIT Margin |
× |
Asset Turnover |
Sep 30, 2024 |
14.68% |
= |
0.80 |
× |
0.87 |
× |
45.52% |
× |
0.46 |
Jun 30, 2024 |
15.44% |
= |
0.80 |
× |
0.88 |
× |
46.00% |
× |
0.48 |
Mar 31, 2024 |
16.06% |
= |
0.81 |
× |
0.88 |
× |
46.84% |
× |
0.48 |
Dec 31, 2023 |
15.08% |
= |
0.80 |
× |
0.89 |
× |
46.61% |
× |
0.45 |
Sep 30, 2023 |
16.00% |
= |
0.81 |
× |
0.89 |
× |
46.65% |
× |
0.48 |
Jun 30, 2023 |
15.86% |
= |
0.80 |
× |
0.89 |
× |
46.49% |
× |
0.48 |
Mar 31, 2023 |
13.22% |
= |
0.80 |
× |
0.87 |
× |
41.86% |
× |
0.45 |
Dec 31, 2022 |
12.25% |
= |
0.79 |
× |
0.87 |
× |
38.96% |
× |
0.46 |
Sep 30, 2022 |
12.19% |
= |
0.78 |
× |
0.87 |
× |
37.71% |
× |
0.48 |
Jun 30, 2022 |
12.35% |
= |
0.78 |
× |
0.87 |
× |
37.79% |
× |
0.48 |
Mar 31, 2022 |
13.98% |
= |
0.82 |
× |
0.88 |
× |
41.62% |
× |
0.47 |
Dec 31, 2021 |
14.01% |
= |
0.83 |
× |
0.89 |
× |
44.41% |
× |
0.43 |
Sep 30, 2021 |
13.81% |
= |
0.82 |
× |
0.88 |
× |
44.61% |
× |
0.43 |
Jun 30, 2021 |
13.29% |
= |
0.82 |
× |
0.87 |
× |
44.11% |
× |
0.42 |
Mar 31, 2021 |
10.10% |
= |
0.78 |
× |
0.84 |
× |
40.20% |
× |
0.38 |
Dec 31, 2020 |
8.99% |
= |
0.77 |
× |
0.83 |
× |
38.31% |
× |
0.36 |
Sep 30, 2020 |
9.72% |
= |
0.78 |
× |
0.84 |
× |
39.13% |
× |
0.38 |
Jun 30, 2020 |
9.55% |
= |
0.76 |
× |
0.84 |
× |
38.61% |
× |
0.39 |
Mar 31, 2020 |
11.48% |
= |
0.76 |
× |
0.87 |
× |
42.04% |
× |
0.41 |
Dec 31, 2019 |
12.68% |
= |
0.75 |
× |
0.88 |
× |
43.37% |
× |
0.44 |
Sep 30, 2019 |
— |
= |
— |
× |
— |
× |
— |
× |
— |
Jun 30, 2019 |
— |
= |
— |
× |
— |
× |
— |
× |
— |
Mar 31, 2019 |
— |
= |
— |
× |
— |
× |
— |
× |
— |
Based on:
10-Q (reporting date: 2024-09-30),
10-Q (reporting date: 2024-06-30),
10-Q (reporting date: 2024-03-31),
10-K (reporting date: 2023-12-31),
10-Q (reporting date: 2023-09-30),
10-Q (reporting date: 2023-06-30),
10-Q (reporting date: 2023-03-31),
10-K (reporting date: 2022-12-31),
10-Q (reporting date: 2022-09-30),
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).
The primary reason for the decrease in return on assets ratio (ROA) over Q3 2024 is the decrease in efficiency measured by asset turnover ratio.
Disaggregation of Net Profit Margin
McDonald’s Corp., decomposition of net profit margin ratio (quarterly data)
|
|
|
|
|
|
|
|
|
Net Profit Margin |
= |
Tax Burden |
× |
Interest Burden |
× |
EBIT Margin |
Sep 30, 2024 |
31.79% |
= |
0.80 |
× |
0.87 |
× |
45.52% |
Jun 30, 2024 |
32.25% |
= |
0.80 |
× |
0.88 |
× |
46.00% |
Mar 31, 2024 |
33.36% |
= |
0.81 |
× |
0.88 |
× |
46.84% |
Dec 31, 2023 |
33.22% |
= |
0.80 |
× |
0.89 |
× |
46.61% |
Sep 30, 2023 |
33.31% |
= |
0.81 |
× |
0.89 |
× |
46.65% |
Jun 30, 2023 |
33.06% |
= |
0.80 |
× |
0.89 |
× |
46.49% |
Mar 31, 2023 |
29.36% |
= |
0.80 |
× |
0.87 |
× |
41.86% |
Dec 31, 2022 |
26.65% |
= |
0.79 |
× |
0.87 |
× |
38.96% |
Sep 30, 2022 |
25.41% |
= |
0.78 |
× |
0.87 |
× |
37.71% |
Jun 30, 2022 |
25.77% |
= |
0.78 |
× |
0.87 |
× |
37.79% |
Mar 31, 2022 |
29.93% |
= |
0.82 |
× |
0.88 |
× |
41.62% |
Dec 31, 2021 |
32.49% |
= |
0.83 |
× |
0.89 |
× |
44.41% |
Sep 30, 2021 |
32.33% |
= |
0.82 |
× |
0.88 |
× |
44.61% |
Jun 30, 2021 |
31.72% |
= |
0.82 |
× |
0.87 |
× |
44.11% |
Mar 31, 2021 |
26.31% |
= |
0.78 |
× |
0.84 |
× |
40.20% |
Dec 31, 2020 |
24.63% |
= |
0.77 |
× |
0.83 |
× |
38.31% |
Sep 30, 2020 |
25.60% |
= |
0.78 |
× |
0.84 |
× |
39.13% |
Jun 30, 2020 |
24.78% |
= |
0.76 |
× |
0.84 |
× |
38.61% |
Mar 31, 2020 |
27.86% |
= |
0.76 |
× |
0.87 |
× |
42.04% |
Dec 31, 2019 |
28.59% |
= |
0.75 |
× |
0.88 |
× |
43.37% |
Sep 30, 2019 |
— |
= |
— |
× |
— |
× |
— |
Jun 30, 2019 |
— |
= |
— |
× |
— |
× |
— |
Mar 31, 2019 |
— |
= |
— |
× |
— |
× |
— |
Based on:
10-Q (reporting date: 2024-09-30),
10-Q (reporting date: 2024-06-30),
10-Q (reporting date: 2024-03-31),
10-K (reporting date: 2023-12-31),
10-Q (reporting date: 2023-09-30),
10-Q (reporting date: 2023-06-30),
10-Q (reporting date: 2023-03-31),
10-K (reporting date: 2022-12-31),
10-Q (reporting date: 2022-09-30),
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).
The primary reason for the decrease in net profit margin ratio over Q3 2024 is the decrease in operating profitability measured by EBIT margin ratio.