DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.
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- Statement of Comprehensive Income
- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Common Stock Valuation Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Selected Financial Data since 2005
- Return on Equity (ROE) since 2005
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Two-Component Disaggregation of ROE
McKesson Corp., decomposition of ROE
| ROE | = | ROA | × | Financial Leverage | |
|---|---|---|---|---|---|
| Mar 31, 2016 | = | × | |||
| Mar 31, 2015 | = | × | |||
| Mar 31, 2014 | = | × | |||
| Mar 31, 2013 | = | × | |||
| Mar 31, 2012 | = | × | |||
| Mar 31, 2011 | = | × |
Based on: 10-K (reporting date: 2016-03-31), 10-K (reporting date: 2015-03-31), 10-K (reporting date: 2014-03-31), 10-K (reporting date: 2013-03-31), 10-K (reporting date: 2012-03-31), 10-K (reporting date: 2011-03-31).
The primary reason for the increase in return on equity ratio (ROE) over 2016 year is the increase in profitability measured by return on assets ratio (ROA).
Three-Component Disaggregation of ROE
McKesson Corp., decomposition of ROE
| ROE | = | Net Profit Margin | × | Asset Turnover | × | Financial Leverage | |
|---|---|---|---|---|---|---|---|
| Mar 31, 2016 | = | × | × | ||||
| Mar 31, 2015 | = | × | × | ||||
| Mar 31, 2014 | = | × | × | ||||
| Mar 31, 2013 | = | × | × | ||||
| Mar 31, 2012 | = | × | × | ||||
| Mar 31, 2011 | = | × | × |
Based on: 10-K (reporting date: 2016-03-31), 10-K (reporting date: 2015-03-31), 10-K (reporting date: 2014-03-31), 10-K (reporting date: 2013-03-31), 10-K (reporting date: 2012-03-31), 10-K (reporting date: 2011-03-31).
The primary reason for the increase in return on equity ratio (ROE) over 2016 year is the increase in profitability measured by net profit margin ratio.
Five-Component Disaggregation of ROE
McKesson Corp., decomposition of ROE
Based on: 10-K (reporting date: 2016-03-31), 10-K (reporting date: 2015-03-31), 10-K (reporting date: 2014-03-31), 10-K (reporting date: 2013-03-31), 10-K (reporting date: 2012-03-31), 10-K (reporting date: 2011-03-31).
The primary reason for the increase in return on equity ratio (ROE) over 2016 year is the increase in operating profitability measured by EBIT margin ratio.
Two-Component Disaggregation of ROA
McKesson Corp., decomposition of ROA
| ROA | = | Net Profit Margin | × | Asset Turnover | |
|---|---|---|---|---|---|
| Mar 31, 2016 | = | × | |||
| Mar 31, 2015 | = | × | |||
| Mar 31, 2014 | = | × | |||
| Mar 31, 2013 | = | × | |||
| Mar 31, 2012 | = | × | |||
| Mar 31, 2011 | = | × |
Based on: 10-K (reporting date: 2016-03-31), 10-K (reporting date: 2015-03-31), 10-K (reporting date: 2014-03-31), 10-K (reporting date: 2013-03-31), 10-K (reporting date: 2012-03-31), 10-K (reporting date: 2011-03-31).
The primary reason for the increase in return on assets ratio (ROA) over 2016 year is the increase in profitability measured by net profit margin ratio.
Four-Component Disaggregation of ROA
McKesson Corp., decomposition of ROA
| ROA | = | Tax Burden | × | Interest Burden | × | EBIT Margin | × | Asset Turnover | |
|---|---|---|---|---|---|---|---|---|---|
| Mar 31, 2016 | = | × | × | × | |||||
| Mar 31, 2015 | = | × | × | × | |||||
| Mar 31, 2014 | = | × | × | × | |||||
| Mar 31, 2013 | = | × | × | × | |||||
| Mar 31, 2012 | = | × | × | × | |||||
| Mar 31, 2011 | = | × | × | × |
Based on: 10-K (reporting date: 2016-03-31), 10-K (reporting date: 2015-03-31), 10-K (reporting date: 2014-03-31), 10-K (reporting date: 2013-03-31), 10-K (reporting date: 2012-03-31), 10-K (reporting date: 2011-03-31).
The primary reason for the increase in return on assets ratio (ROA) over 2016 year is the increase in operating profitability measured by EBIT margin ratio.
Disaggregation of Net Profit Margin
McKesson Corp., decomposition of net profit margin ratio
| Net Profit Margin | = | Tax Burden | × | Interest Burden | × | EBIT Margin | |
|---|---|---|---|---|---|---|---|
| Mar 31, 2016 | = | × | × | ||||
| Mar 31, 2015 | = | × | × | ||||
| Mar 31, 2014 | = | × | × | ||||
| Mar 31, 2013 | = | × | × | ||||
| Mar 31, 2012 | = | × | × | ||||
| Mar 31, 2011 | = | × | × |
Based on: 10-K (reporting date: 2016-03-31), 10-K (reporting date: 2015-03-31), 10-K (reporting date: 2014-03-31), 10-K (reporting date: 2013-03-31), 10-K (reporting date: 2012-03-31), 10-K (reporting date: 2011-03-31).
The primary reason for the increase in net profit margin ratio over 2016 year is the increase in operating profitability measured by EBIT margin ratio.