Stock Analysis on Net
Stock Analysis on Net

Williams-Sonoma Inc. (NYSE:WSM)

This company has been moved to the archive! The financial data has not been updated since May 24, 2024.

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

Williams-Sonoma Inc., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Jan 28, 2024 44.63% = 18.01% × 2.48
Jan 29, 2023 66.31% = 24.19% × 2.74
Jan 30, 2022 67.68% = 24.35% × 2.78
Jan 31, 2021 41.23% = 14.60% × 2.82
Feb 2, 2020 28.81% = 8.78% × 3.28
Feb 3, 2019 28.87% = 11.86% × 2.43

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

The primary reason for the decrease in return on equity ratio (ROE) over 2024 year is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Williams-Sonoma Inc., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Jan 28, 2024 44.63% = 12.25% × 1.47 × 2.48
Jan 29, 2023 66.31% = 13.00% × 1.86 × 2.74
Jan 30, 2022 67.68% = 13.66% × 1.78 × 2.78
Jan 31, 2021 41.23% = 10.04% × 1.46 × 2.82
Feb 2, 2020 28.81% = 6.04% × 1.45 × 3.28
Feb 3, 2019 28.87% = 5.88% × 2.02 × 2.43

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

The primary reason for the decrease in return on equity ratio (ROE) over 2024 year is the decrease in efficiency measured by asset turnover ratio.

Five-Component Disaggregation of ROE

Williams-Sonoma Inc., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Jan 28, 2024 44.63% = 0.75 × 1.02 × 16.05% × 1.47 × 2.48
Jan 29, 2023 66.31% = 0.75 × 1.00 × 17.27% × 1.86 × 2.74
Jan 30, 2022 67.68% = 0.78 × 1.00 × 17.62% × 1.78 × 2.78
Jan 31, 2021 41.23% = 0.76 × 0.98 × 13.43% × 1.46 × 2.82
Feb 2, 2020 28.81% = 0.78 × 0.98 × 7.90% × 1.45 × 3.28
Feb 3, 2019 28.87% = 0.78 × 0.98 × 7.69% × 2.02 × 2.43

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

The primary reason for the decrease in return on equity ratio (ROE) over 2024 year is the decrease in efficiency measured by asset turnover ratio.

Two-Component Disaggregation of ROA

Williams-Sonoma Inc., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Jan 28, 2024 18.01% = 12.25% × 1.47
Jan 29, 2023 24.19% = 13.00% × 1.86
Jan 30, 2022 24.35% = 13.66% × 1.78
Jan 31, 2021 14.60% = 10.04% × 1.46
Feb 2, 2020 8.78% = 6.04% × 1.45
Feb 3, 2019 11.86% = 5.88% × 2.02

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

The primary reason for the decrease in return on assets ratio (ROA) over 2024 year is the decrease in asset turnover ratio.

Four-Component Disaggregation of ROA

Williams-Sonoma Inc., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Jan 28, 2024 18.01% = 0.75 × 1.02 × 16.05% × 1.47
Jan 29, 2023 24.19% = 0.75 × 1.00 × 17.27% × 1.86
Jan 30, 2022 24.35% = 0.78 × 1.00 × 17.62% × 1.78
Jan 31, 2021 14.60% = 0.76 × 0.98 × 13.43% × 1.46
Feb 2, 2020 8.78% = 0.78 × 0.98 × 7.90% × 1.45
Feb 3, 2019 11.86% = 0.78 × 0.98 × 7.69% × 2.02

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

The primary reason for the decrease in return on assets ratio (ROA) over 2024 year is the decrease in efficiency measured by asset turnover ratio.

Disaggregation of Net Profit Margin

Williams-Sonoma Inc., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Jan 28, 2024 12.25% = 0.75 × 1.02 × 16.05%
Jan 29, 2023 13.00% = 0.75 × 1.00 × 17.27%
Jan 30, 2022 13.66% = 0.78 × 1.00 × 17.62%
Jan 31, 2021 10.04% = 0.76 × 0.98 × 13.43%
Feb 2, 2020 6.04% = 0.78 × 0.98 × 7.90%
Feb 3, 2019 5.88% = 0.78 × 0.98 × 7.69%

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

The primary reason for the decrease in net profit margin ratio over 2024 year is the decrease in operating profitability measured by EBIT margin ratio.