Stock Analysis on Net
Stock Analysis on Net

Reynolds American Inc. (NYSE:RAI)

This company has been moved to the archive! The financial data has not been updated since May 3, 2017.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin 
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Reynolds American Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Mar 31, 2017 15.15% = 6.33% × 2.39
Dec 31, 2016 27.97% = 11.89% × 2.35
Sep 30, 2016 25.53% = 10.62% × 2.40
Jun 30, 2016 24.75% = 10.23% × 2.42
Mar 31, 2016 30.38% = 11.82% × 2.57
Dec 31, 2015 17.82% = 6.11% × 2.92
Sep 30, 2015 16.90% = 5.81% × 2.91
Jun 30, 2015 16.00% = 5.37% × 2.98
Mar 31, 2015 33.10% = 9.44% × 3.51
Dec 31, 2014 32.51% = 9.67% × 3.36
Sep 30, 2014 32.33% = 10.53% × 3.07
Jun 30, 2014 32.77% = 10.48% × 3.13
Mar 31, 2014 31.38% = 9.96% × 3.15
Dec 31, 2013 33.25% = 11.15% × 2.98
Sep 30, 2013 30.81% = 9.43% × 3.27
Jun 30, 2013 29.98% = 9.84% × 3.05
Mar 31, 2013 29.50% = 9.00% × 3.28
Dec 31, 2012 24.20% = 7.68% × 3.15
Sep 30, 2012 — = — × 2.69
Jun 30, 2012 — = — × 2.59
Mar 31, 2012 — = — × 2.77

Based on: 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), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q1 2017 is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Reynolds American Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Mar 31, 2017 15.15% = 19.54% × 0.32 × 2.39
Dec 31, 2016 27.97% = 36.05% × 0.33 × 2.35
Sep 30, 2016 25.53% = 32.73% × 0.32 × 2.40
Jun 30, 2016 24.75% = 31.42% × 0.33 × 2.42
Mar 31, 2016 30.38% = 40.35% × 0.29 × 2.57
Dec 31, 2015 17.82% = 21.86% × 0.28 × 2.92
Sep 30, 2015 16.90% = 22.80% × 0.25 × 2.91
Jun 30, 2015 16.00% = 23.43% × 0.23 × 2.98
Mar 31, 2015 33.10% = 12.25% × 0.77 × 3.51
Dec 31, 2014 32.51% = 12.15% × 0.80 × 3.36
Sep 30, 2014 32.33% = 13.42% × 0.78 × 3.07
Jun 30, 2014 32.77% = 13.44% × 0.78 × 3.13
Mar 31, 2014 31.38% = 13.10% × 0.76 × 3.15
Dec 31, 2013 33.25% = 14.36% × 0.78 × 2.98
Sep 30, 2013 30.81% = 12.97% × 0.73 × 3.27
Jun 30, 2013 29.98% = 12.66% × 0.78 × 3.05
Mar 31, 2013 29.50% = 12.47% × 0.72 × 3.28
Dec 31, 2012 24.20% = 10.40% × 0.74 × 3.15
Sep 30, 2012 — = — × — × 2.69
Jun 30, 2012 — = — × — × 2.59
Mar 31, 2012 — = — × — × 2.77

Based on: 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), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q1 2017 is the decrease in profitability measured by net profit margin ratio.

Five-Component Disaggregation of ROE

Reynolds American Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Mar 31, 2017 15.15% = 0.64 × 0.90 × 34.15% × 0.32 × 2.39
Dec 31, 2016 27.97% = 0.63 × 0.94 × 61.24% × 0.33 × 2.35
Sep 30, 2016 25.53% = 0.62 × 0.93 × 56.66% × 0.32 × 2.40
Jun 30, 2016 24.75% = 0.62 × 0.92 × 54.63% × 0.33 × 2.42
Mar 31, 2016 30.38% = 0.56 × 0.95 × 76.16% × 0.29 × 2.57
Dec 31, 2015 17.82% = 0.51 × 0.92 × 46.72% × 0.28 × 2.92
Sep 30, 2015 16.90% = 0.51 × 0.93 × 47.89% × 0.25 × 2.91
Jun 30, 2015 16.00% = 0.50 × 0.94 × 49.36% × 0.23 × 2.98
Mar 31, 2015 33.10% = 0.64 × 0.88 × 21.86% × 0.77 × 3.51
Dec 31, 2014 32.51% = 0.64 × 0.89 × 21.27% × 0.80 × 3.36
Sep 30, 2014 32.33% = 0.64 × 0.91 × 23.28% × 0.78 × 3.07
Jun 30, 2014 32.77% = 0.64 × 0.91 × 23.16% × 0.78 × 3.13
Mar 31, 2014 31.38% = 0.64 × 0.91 × 22.68% × 0.76 × 3.15
Dec 31, 2013 33.25% = 0.63 × 0.91 × 25.07% × 0.78 × 2.98
Sep 30, 2013 30.81% = 0.63 × 0.91 × 22.57% × 0.73 × 3.27
Jun 30, 2013 29.98% = 0.63 × 0.91 × 22.01% × 0.78 × 3.05
Mar 31, 2013 29.50% = 0.64 × 0.91 × 21.41% × 0.72 × 3.28
Dec 31, 2012 24.20% = 0.65 × 0.89 × 17.89% × 0.74 × 3.15
Sep 30, 2012 — = — × — × — × — × 2.69
Jun 30, 2012 — = — × — × — × — × 2.59
Mar 31, 2012 — = — × — × — × — × 2.77

Based on: 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), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q1 2017 is the decrease in operating profitability measured by EBIT margin ratio.

Two-Component Disaggregation of ROA

Reynolds American Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Mar 31, 2017 6.33% = 19.54% × 0.32
Dec 31, 2016 11.89% = 36.05% × 0.33
Sep 30, 2016 10.62% = 32.73% × 0.32
Jun 30, 2016 10.23% = 31.42% × 0.33
Mar 31, 2016 11.82% = 40.35% × 0.29
Dec 31, 2015 6.11% = 21.86% × 0.28
Sep 30, 2015 5.81% = 22.80% × 0.25
Jun 30, 2015 5.37% = 23.43% × 0.23
Mar 31, 2015 9.44% = 12.25% × 0.77
Dec 31, 2014 9.67% = 12.15% × 0.80
Sep 30, 2014 10.53% = 13.42% × 0.78
Jun 30, 2014 10.48% = 13.44% × 0.78
Mar 31, 2014 9.96% = 13.10% × 0.76
Dec 31, 2013 11.15% = 14.36% × 0.78
Sep 30, 2013 9.43% = 12.97% × 0.73
Jun 30, 2013 9.84% = 12.66% × 0.78
Mar 31, 2013 9.00% = 12.47% × 0.72
Dec 31, 2012 7.68% = 10.40% × 0.74
Sep 30, 2012 — = — × —
Jun 30, 2012 — = — × —
Mar 31, 2012 — = — × —

Based on: 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), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q1 2017 is the decrease in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

Reynolds American Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Mar 31, 2017 6.33% = 0.64 × 0.90 × 34.15% × 0.32
Dec 31, 2016 11.89% = 0.63 × 0.94 × 61.24% × 0.33
Sep 30, 2016 10.62% = 0.62 × 0.93 × 56.66% × 0.32
Jun 30, 2016 10.23% = 0.62 × 0.92 × 54.63% × 0.33
Mar 31, 2016 11.82% = 0.56 × 0.95 × 76.16% × 0.29
Dec 31, 2015 6.11% = 0.51 × 0.92 × 46.72% × 0.28
Sep 30, 2015 5.81% = 0.51 × 0.93 × 47.89% × 0.25
Jun 30, 2015 5.37% = 0.50 × 0.94 × 49.36% × 0.23
Mar 31, 2015 9.44% = 0.64 × 0.88 × 21.86% × 0.77
Dec 31, 2014 9.67% = 0.64 × 0.89 × 21.27% × 0.80
Sep 30, 2014 10.53% = 0.64 × 0.91 × 23.28% × 0.78
Jun 30, 2014 10.48% = 0.64 × 0.91 × 23.16% × 0.78
Mar 31, 2014 9.96% = 0.64 × 0.91 × 22.68% × 0.76
Dec 31, 2013 11.15% = 0.63 × 0.91 × 25.07% × 0.78
Sep 30, 2013 9.43% = 0.63 × 0.91 × 22.57% × 0.73
Jun 30, 2013 9.84% = 0.63 × 0.91 × 22.01% × 0.78
Mar 31, 2013 9.00% = 0.64 × 0.91 × 21.41% × 0.72
Dec 31, 2012 7.68% = 0.65 × 0.89 × 17.89% × 0.74
Sep 30, 2012 — = — × — × — × —
Jun 30, 2012 — = — × — × — × —
Mar 31, 2012 — = — × — × — × —

Based on: 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), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q1 2017 is the decrease in operating profitability measured by EBIT margin ratio.

Disaggregation of Net Profit Margin

Reynolds American Inc., decomposition of net profit margin ratio (quarterly data)

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Mar 31, 2017 19.54% = 0.64 × 0.90 × 34.15%
Dec 31, 2016 36.05% = 0.63 × 0.94 × 61.24%
Sep 30, 2016 32.73% = 0.62 × 0.93 × 56.66%
Jun 30, 2016 31.42% = 0.62 × 0.92 × 54.63%
Mar 31, 2016 40.35% = 0.56 × 0.95 × 76.16%
Dec 31, 2015 21.86% = 0.51 × 0.92 × 46.72%
Sep 30, 2015 22.80% = 0.51 × 0.93 × 47.89%
Jun 30, 2015 23.43% = 0.50 × 0.94 × 49.36%
Mar 31, 2015 12.25% = 0.64 × 0.88 × 21.86%
Dec 31, 2014 12.15% = 0.64 × 0.89 × 21.27%
Sep 30, 2014 13.42% = 0.64 × 0.91 × 23.28%
Jun 30, 2014 13.44% = 0.64 × 0.91 × 23.16%
Mar 31, 2014 13.10% = 0.64 × 0.91 × 22.68%
Dec 31, 2013 14.36% = 0.63 × 0.91 × 25.07%
Sep 30, 2013 12.97% = 0.63 × 0.91 × 22.57%
Jun 30, 2013 12.66% = 0.63 × 0.91 × 22.01%
Mar 31, 2013 12.47% = 0.64 × 0.91 × 21.41%
Dec 31, 2012 10.40% = 0.65 × 0.89 × 17.89%
Sep 30, 2012 — = — × — × —
Jun 30, 2012 — = — × — × —
Mar 31, 2012 — = — × — × —

Based on: 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), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).

The primary reason for the decrease in net profit margin ratio over Q1 2017 is the decrease in operating profitability measured by EBIT margin ratio.