Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Assets
- Analysis of Profitability Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Reportable Segments
- Enterprise Value to FCFF (EV/FCFF)
- Net Profit Margin since 2013
- Return on Equity (ROE) since 2013
- Price to Earnings (P/E) since 2013
- Aggregate Accruals
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Two-Component Disaggregation of ROE
ROE | = | ROA | × | Financial Leverage | |
---|---|---|---|---|---|
Jan 28, 2023 | = | × | |||
Jan 29, 2022 | = | × | |||
Jan 30, 2021 | = | × | |||
Feb 1, 2020 | = | × | |||
Feb 2, 2019 | = | × | |||
Feb 3, 2018 | = | × |
Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).
The primary reason for the increase in return on equity ratio (ROE) over 2023 year is the increase in financial leverage ratio.
Three-Component Disaggregation of ROE
ROE | = | Net Profit Margin | × | Asset Turnover | × | Financial Leverage | |
---|---|---|---|---|---|---|---|
Jan 28, 2023 | = | × | × | ||||
Jan 29, 2022 | = | × | × | ||||
Jan 30, 2021 | = | × | × | ||||
Feb 1, 2020 | = | × | × | ||||
Feb 2, 2019 | = | × | × | ||||
Feb 3, 2018 | = | × | × |
Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).
The primary reason for the increase in return on equity ratio (ROE) over 2023 year is the increase in financial leverage ratio.
Five-Component Disaggregation of ROE
Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).
The primary reason for the increase in return on equity ratio (ROE) over 2023 year is the increase in effect of taxes measured by tax burden ratio.
Two-Component Disaggregation of ROA
ROA | = | Net Profit Margin | × | Asset Turnover | |
---|---|---|---|---|---|
Jan 28, 2023 | = | × | |||
Jan 29, 2022 | = | × | |||
Jan 30, 2021 | = | × | |||
Feb 1, 2020 | = | × | |||
Feb 2, 2019 | = | × | |||
Feb 3, 2018 | = | × |
Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).
The primary reason for the decrease in return on assets ratio (ROA) over 2023 year is the decrease in profitability measured by net profit margin ratio.
Four-Component Disaggregation of ROA
ROA | = | Tax Burden | × | Interest Burden | × | EBIT Margin | × | Asset Turnover | |
---|---|---|---|---|---|---|---|---|---|
Jan 28, 2023 | = | × | × | × | |||||
Jan 29, 2022 | = | × | × | × | |||||
Jan 30, 2021 | = | × | × | × | |||||
Feb 1, 2020 | = | × | × | × | |||||
Feb 2, 2019 | = | × | × | × | |||||
Feb 3, 2018 | = | × | × | × |
Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).
The primary reason for the decrease in return on assets ratio (ROA) over 2023 year is the decrease in operating profitability measured by EBIT margin ratio.
Disaggregation of Net Profit Margin
Net Profit Margin | = | Tax Burden | × | Interest Burden | × | EBIT Margin | |
---|---|---|---|---|---|---|---|
Jan 28, 2023 | = | × | × | ||||
Jan 29, 2022 | = | × | × | ||||
Jan 30, 2021 | = | × | × | ||||
Feb 1, 2020 | = | × | × | ||||
Feb 2, 2019 | = | × | × | ||||
Feb 3, 2018 | = | × | × |
Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).
The primary reason for the decrease in net profit margin ratio over 2023 year is the decrease in operating profitability measured by EBIT margin ratio.