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
Sherwin-Williams Co., decomposition of ROE (quarterly data)
ROE
=
ROA
×
Financial Leverage
Jun 30, 2022
78.89%
=
7.96%
×
9.91
Mar 31, 2022
81.71%
=
8.40%
×
9.73
Dec 31, 2021
76.50%
=
9.02%
×
8.48
Sep 30, 2021
73.13%
=
9.49%
×
7.71
Jun 30, 2021
76.43%
=
10.58%
×
7.22
Mar 31, 2021
68.81%
=
10.37%
×
6.64
Dec 31, 2020
56.23%
=
9.95%
×
5.65
Sep 30, 2020
44.49%
=
9.00%
×
4.95
Jun 30, 2020
45.03%
=
8.50%
×
5.30
Mar 31, 2020
49.19%
=
7.86%
×
6.25
Dec 31, 2019
37.38%
=
7.52%
×
4.97
Sep 30, 2019
34.64%
=
6.68%
×
5.19
Jun 30, 2019
31.25%
=
5.53%
×
5.65
Mar 31, 2019
31.90%
=
5.27%
×
6.06
Dec 31, 2018
29.72%
=
5.79%
×
5.13
Sep 30, 2018
47.93%
=
9.53%
×
5.03
Jun 30, 2018
49.84%
=
9.27%
×
5.38
Mar 31, 2018
48.33%
=
8.76%
×
5.52
Dec 31, 2017
48.00%
=
8.88%
×
5.41
Sep 30, 2017
—
=
—
×
7.58
Jun 30, 2017
—
=
—
×
8.66
Mar 31, 2017
—
=
—
×
3.38
Based on:
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) ,
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) .
The primary reason for the decrease in return on equity ratio (ROE) over Q2 2022 is the decrease in profitability measured by return on assets ratio (ROA).
Three-Component Disaggregation of ROE
Annual Data
Quarterly Data
Sherwin-Williams Co., decomposition of ROE (quarterly data)
ROE
=
Net Profit Margin
×
Asset Turnover
×
Financial Leverage
Jun 30, 2022
78.89%
=
8.45%
×
0.94
×
9.91
Mar 31, 2022
81.71%
=
9.00%
×
0.93
×
9.73
Dec 31, 2021
76.50%
=
9.35%
×
0.97
×
8.48
Sep 30, 2021
73.13%
=
10.00%
×
0.95
×
7.71
Jun 30, 2021
76.43%
=
11.05%
×
0.96
×
7.22
Mar 31, 2021
68.81%
=
11.23%
×
0.92
×
6.64
Dec 31, 2020
56.23%
=
11.06%
×
0.90
×
5.65
Sep 30, 2020
44.49%
=
10.41%
×
0.86
×
4.95
Jun 30, 2020
45.03%
=
9.83%
×
0.87
×
5.30
Mar 31, 2020
49.19%
=
8.98%
×
0.88
×
6.25
Dec 31, 2019
37.38%
=
8.61%
×
0.87
×
4.97
Sep 30, 2019
34.64%
=
7.81%
×
0.86
×
5.19
Jun 30, 2019
31.25%
=
6.61%
×
0.84
×
5.65
Mar 31, 2019
31.90%
=
6.27%
×
0.84
×
6.06
Dec 31, 2018
29.72%
=
6.32%
×
0.92
×
5.13
Sep 30, 2018
47.93%
=
10.92%
×
0.87
×
5.03
Jun 30, 2018
49.84%
=
10.84%
×
0.85
×
5.38
Mar 31, 2018
48.33%
=
11.02%
×
0.79
×
5.52
Dec 31, 2017
48.00%
=
11.83%
×
0.75
×
5.41
Sep 30, 2017
—
=
—
×
—
×
7.58
Jun 30, 2017
—
=
—
×
—
×
8.66
Mar 31, 2017
—
=
—
×
—
×
3.38
Based on:
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) ,
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) .
The primary reason for the decrease in return on equity ratio (ROE) over Q2 2022 is the decrease in profitability measured by net profit margin ratio.
Five-Component Disaggregation of ROE
Annual Data
Quarterly Data
Sherwin-Williams Co., decomposition of ROE (quarterly data)
ROE
=
Tax Burden
×
Interest Burden
×
EBIT Margin
×
Asset Turnover
×
Financial Leverage
Jun 30, 2022
78.89%
=
0.83
×
0.86
×
11.89%
×
0.94
×
9.91
Mar 31, 2022
81.71%
=
0.83
×
0.87
×
12.52%
×
0.93
×
9.73
Dec 31, 2021
76.50%
=
0.83
×
0.87
×
12.95%
×
0.97
×
8.48
Sep 30, 2021
73.13%
=
0.81
×
0.88
×
14.11%
×
0.95
×
7.71
Jun 30, 2021
76.43%
=
0.80
×
0.89
×
15.48%
×
0.96
×
7.22
Mar 31, 2021
68.81%
=
0.80
×
0.89
×
15.76%
×
0.92
×
6.64
Dec 31, 2020
56.23%
=
0.81
×
0.88
×
15.57%
×
0.90
×
5.65
Sep 30, 2020
44.49%
=
0.81
×
0.87
×
14.76%
×
0.86
×
4.95
Jun 30, 2020
45.03%
=
0.81
×
0.86
×
14.04%
×
0.87
×
5.30
Mar 31, 2020
49.19%
=
0.78
×
0.86
×
13.44%
×
0.88
×
6.25
Dec 31, 2019
37.38%
=
0.78
×
0.85
×
13.02%
×
0.87
×
4.97
Sep 30, 2019
34.64%
=
0.78
×
0.83
×
12.00%
×
0.86
×
5.19
Jun 30, 2019
31.25%
=
0.78
×
0.80
×
10.47%
×
0.84
×
5.65
Mar 31, 2019
31.90%
=
0.81
×
0.79
×
9.77%
×
0.84
×
6.06
Dec 31, 2018
29.72%
=
0.82
×
0.79
×
9.85%
×
0.92
×
5.13
Sep 30, 2018
47.93%
=
1.24
×
0.81
×
10.94%
×
0.87
×
5.03
Jun 30, 2018
49.84%
=
1.20
×
0.81
×
11.15%
×
0.85
×
5.38
Mar 31, 2018
48.33%
=
1.20
×
0.82
×
11.20%
×
0.79
×
5.52
Dec 31, 2017
48.00%
=
1.19
×
0.85
×
11.68%
×
0.75
×
5.41
Sep 30, 2017
—
=
—
×
—
×
—
×
—
×
7.58
Jun 30, 2017
—
=
—
×
—
×
—
×
—
×
8.66
Mar 31, 2017
—
=
—
×
—
×
—
×
—
×
3.38
Based on:
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) ,
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) .
The primary reason for the decrease in return on equity ratio (ROE) over Q2 2022 is the decrease in operating profitability measured by EBIT margin ratio.
Two-Component Disaggregation of ROA
Annual Data
Quarterly Data
Sherwin-Williams Co., decomposition of ROA (quarterly data)
ROA
=
Net Profit Margin
×
Asset Turnover
Jun 30, 2022
7.96%
=
8.45%
×
0.94
Mar 31, 2022
8.40%
=
9.00%
×
0.93
Dec 31, 2021
9.02%
=
9.35%
×
0.97
Sep 30, 2021
9.49%
=
10.00%
×
0.95
Jun 30, 2021
10.58%
=
11.05%
×
0.96
Mar 31, 2021
10.37%
=
11.23%
×
0.92
Dec 31, 2020
9.95%
=
11.06%
×
0.90
Sep 30, 2020
9.00%
=
10.41%
×
0.86
Jun 30, 2020
8.50%
=
9.83%
×
0.87
Mar 31, 2020
7.86%
=
8.98%
×
0.88
Dec 31, 2019
7.52%
=
8.61%
×
0.87
Sep 30, 2019
6.68%
=
7.81%
×
0.86
Jun 30, 2019
5.53%
=
6.61%
×
0.84
Mar 31, 2019
5.27%
=
6.27%
×
0.84
Dec 31, 2018
5.79%
=
6.32%
×
0.92
Sep 30, 2018
9.53%
=
10.92%
×
0.87
Jun 30, 2018
9.27%
=
10.84%
×
0.85
Mar 31, 2018
8.76%
=
11.02%
×
0.79
Dec 31, 2017
8.88%
=
11.83%
×
0.75
Sep 30, 2017
—
=
—
×
—
Jun 30, 2017
—
=
—
×
—
Mar 31, 2017
—
=
—
×
—
Based on:
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) ,
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) .
The primary reason for the decrease in return on assets ratio (ROA) over Q2 2022 is the decrease in profitability measured by net profit margin ratio.
Four-Component Disaggregation of ROA
Annual Data
Quarterly Data
Sherwin-Williams Co., decomposition of ROA (quarterly data)
ROA
=
Tax Burden
×
Interest Burden
×
EBIT Margin
×
Asset Turnover
Jun 30, 2022
7.96%
=
0.83
×
0.86
×
11.89%
×
0.94
Mar 31, 2022
8.40%
=
0.83
×
0.87
×
12.52%
×
0.93
Dec 31, 2021
9.02%
=
0.83
×
0.87
×
12.95%
×
0.97
Sep 30, 2021
9.49%
=
0.81
×
0.88
×
14.11%
×
0.95
Jun 30, 2021
10.58%
=
0.80
×
0.89
×
15.48%
×
0.96
Mar 31, 2021
10.37%
=
0.80
×
0.89
×
15.76%
×
0.92
Dec 31, 2020
9.95%
=
0.81
×
0.88
×
15.57%
×
0.90
Sep 30, 2020
9.00%
=
0.81
×
0.87
×
14.76%
×
0.86
Jun 30, 2020
8.50%
=
0.81
×
0.86
×
14.04%
×
0.87
Mar 31, 2020
7.86%
=
0.78
×
0.86
×
13.44%
×
0.88
Dec 31, 2019
7.52%
=
0.78
×
0.85
×
13.02%
×
0.87
Sep 30, 2019
6.68%
=
0.78
×
0.83
×
12.00%
×
0.86
Jun 30, 2019
5.53%
=
0.78
×
0.80
×
10.47%
×
0.84
Mar 31, 2019
5.27%
=
0.81
×
0.79
×
9.77%
×
0.84
Dec 31, 2018
5.79%
=
0.82
×
0.79
×
9.85%
×
0.92
Sep 30, 2018
9.53%
=
1.24
×
0.81
×
10.94%
×
0.87
Jun 30, 2018
9.27%
=
1.20
×
0.81
×
11.15%
×
0.85
Mar 31, 2018
8.76%
=
1.20
×
0.82
×
11.20%
×
0.79
Dec 31, 2017
8.88%
=
1.19
×
0.85
×
11.68%
×
0.75
Sep 30, 2017
—
=
—
×
—
×
—
×
—
Jun 30, 2017
—
=
—
×
—
×
—
×
—
Mar 31, 2017
—
=
—
×
—
×
—
×
—
Based on:
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) ,
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) .
The primary reason for the decrease in return on assets ratio (ROA) over Q2 2022 is the decrease in operating profitability measured by EBIT margin ratio.
Disaggregation of Net Profit Margin
Annual Data
Quarterly Data
Sherwin-Williams Co., decomposition of net profit margin ratio (quarterly data)
Net Profit Margin
=
Tax Burden
×
Interest Burden
×
EBIT Margin
Jun 30, 2022
8.45%
=
0.83
×
0.86
×
11.89%
Mar 31, 2022
9.00%
=
0.83
×
0.87
×
12.52%
Dec 31, 2021
9.35%
=
0.83
×
0.87
×
12.95%
Sep 30, 2021
10.00%
=
0.81
×
0.88
×
14.11%
Jun 30, 2021
11.05%
=
0.80
×
0.89
×
15.48%
Mar 31, 2021
11.23%
=
0.80
×
0.89
×
15.76%
Dec 31, 2020
11.06%
=
0.81
×
0.88
×
15.57%
Sep 30, 2020
10.41%
=
0.81
×
0.87
×
14.76%
Jun 30, 2020
9.83%
=
0.81
×
0.86
×
14.04%
Mar 31, 2020
8.98%
=
0.78
×
0.86
×
13.44%
Dec 31, 2019
8.61%
=
0.78
×
0.85
×
13.02%
Sep 30, 2019
7.81%
=
0.78
×
0.83
×
12.00%
Jun 30, 2019
6.61%
=
0.78
×
0.80
×
10.47%
Mar 31, 2019
6.27%
=
0.81
×
0.79
×
9.77%
Dec 31, 2018
6.32%
=
0.82
×
0.79
×
9.85%
Sep 30, 2018
10.92%
=
1.24
×
0.81
×
10.94%
Jun 30, 2018
10.84%
=
1.20
×
0.81
×
11.15%
Mar 31, 2018
11.02%
=
1.20
×
0.82
×
11.20%
Dec 31, 2017
11.83%
=
1.19
×
0.85
×
11.68%
Sep 30, 2017
—
=
—
×
—
×
—
Jun 30, 2017
—
=
—
×
—
×
—
Mar 31, 2017
—
=
—
×
—
×
—
Based on:
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) ,
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) .
The primary reason for the decrease in net profit margin ratio over Q2 2022 is the decrease in operating profitability measured by EBIT margin ratio.