Stock Analysis on Net
Stock Analysis on Net

Visa Inc. (NYSE:V)

This company has been moved to the archive! The financial data has not been updated since April 27, 2023.

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

Microsoft Excel

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

Two-Component Disaggregation of ROE

Visa Inc., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Sep 30, 2022 42.04% = 17.49% × 2.40
Sep 30, 2021 32.75% = 14.85% × 2.21
Sep 30, 2020 30.01% = 13.43% × 2.23
Sep 30, 2019 34.83% = 16.65% × 2.09
Sep 30, 2018 30.29% = 14.88% × 2.04
Sep 30, 2017 20.45% = 9.85% × 2.08

Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).

The primary reason for the increase in return on equity ratio (ROE) over 2022 year is the increase in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Visa Inc., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Sep 30, 2022 42.04% = 51.03% × 0.34 × 2.40
Sep 30, 2021 32.75% = 51.07% × 0.29 × 2.21
Sep 30, 2020 30.01% = 49.74% × 0.27 × 2.23
Sep 30, 2019 34.83% = 52.57% × 0.32 × 2.09
Sep 30, 2018 30.29% = 49.98% × 0.30 × 2.04
Sep 30, 2017 20.45% = 36.49% × 0.27 × 2.08

Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).

The primary reason for the increase in return on equity ratio (ROE) over 2022 year is the increase in efficiency measured by asset turnover ratio.

Five-Component Disaggregation of ROE

Visa Inc., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Sep 30, 2022 42.04% = 0.82 × 0.97 × 63.71% × 0.34 × 2.40
Sep 30, 2021 32.75% = 0.77 × 0.97 × 68.77% × 0.29 × 2.21
Sep 30, 2020 30.01% = 0.79 × 0.96 × 65.49% × 0.27 × 2.23
Sep 30, 2019 34.83% = 0.81 × 0.97 × 67.10% × 0.32 × 2.09
Sep 30, 2018 30.29% = 0.80 × 0.95 × 65.11% × 0.30 × 2.04
Sep 30, 2017 20.45% = 0.57 × 0.95 × 66.77% × 0.27 × 2.08

Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).

The primary reason for the increase in return on equity ratio (ROE) over 2022 year is the increase in efficiency measured by asset turnover ratio.

Two-Component Disaggregation of ROA

Visa Inc., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Sep 30, 2022 17.49% = 51.03% × 0.34
Sep 30, 2021 14.85% = 51.07% × 0.29
Sep 30, 2020 13.43% = 49.74% × 0.27
Sep 30, 2019 16.65% = 52.57% × 0.32
Sep 30, 2018 14.88% = 49.98% × 0.30
Sep 30, 2017 9.85% = 36.49% × 0.27

Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).

The primary reason for the increase in return on assets ratio (ROA) over 2022 year is the increase in asset turnover ratio.

Four-Component Disaggregation of ROA

Visa Inc., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Sep 30, 2022 17.49% = 0.82 × 0.97 × 63.71% × 0.34
Sep 30, 2021 14.85% = 0.77 × 0.97 × 68.77% × 0.29
Sep 30, 2020 13.43% = 0.79 × 0.96 × 65.49% × 0.27
Sep 30, 2019 16.65% = 0.81 × 0.97 × 67.10% × 0.32
Sep 30, 2018 14.88% = 0.80 × 0.95 × 65.11% × 0.30
Sep 30, 2017 9.85% = 0.57 × 0.95 × 66.77% × 0.27

Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).

The primary reason for the increase in return on assets ratio (ROA) over 2022 year is the increase in efficiency measured by asset turnover ratio.

Disaggregation of Net Profit Margin

Visa Inc., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Sep 30, 2022 51.03% = 0.82 × 0.97 × 63.71%
Sep 30, 2021 51.07% = 0.77 × 0.97 × 68.77%
Sep 30, 2020 49.74% = 0.79 × 0.96 × 65.49%
Sep 30, 2019 52.57% = 0.81 × 0.97 × 67.10%
Sep 30, 2018 49.98% = 0.80 × 0.95 × 65.11%
Sep 30, 2017 36.49% = 0.57 × 0.95 × 66.77%

Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).

The primary reason for the decrease in net profit margin ratio over 2022 year is the decrease in operating profitability measured by EBIT margin ratio.