Stock Analysis on Net
Stock Analysis on Net

Abiomed Inc. (NASDAQ:ABMD)

This company has been moved to the archive! The financial data has not been updated since November 3, 2022.

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

Abiomed Inc., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Mar 31, 2022 9.08% = 8.16% × 1.11
Mar 31, 2021 16.96% = 15.09% × 1.12
Mar 31, 2020 19.05% = 16.69% × 1.14
Mar 31, 2019 27.65% = 24.57% × 1.13
Mar 31, 2018 16.27% = 14.26% × 1.14
Mar 31, 2017 11.53% = 9.47% × 1.22

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

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

Three-Component Disaggregation of ROE

Abiomed Inc., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Mar 31, 2022 9.08% = 13.23% × 0.62 × 1.11
Mar 31, 2021 16.96% = 26.61% × 0.57 × 1.12
Mar 31, 2020 19.05% = 24.14% × 0.69 × 1.14
Mar 31, 2019 27.65% = 33.66% × 0.73 × 1.13
Mar 31, 2018 16.27% = 18.89% × 0.76 × 1.14
Mar 31, 2017 11.53% = 11.70% × 0.81 × 1.22

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over 2022 year is the decrease in profitability measured by net profit margin ratio.

Five-Component Disaggregation of ROE

Abiomed Inc., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Mar 31, 2022 9.08% = 0.72 × 1.00 × 18.47% × 0.62 × 1.11
Mar 31, 2021 16.96% = 0.78 × 1.00 × 34.01% × 0.57 × 1.12
Mar 31, 2020 19.05% = 0.79 × 1.00 × 30.54% × 0.69 × 1.14
Mar 31, 2019 27.65% = 0.98 × 1.00 × 34.23% × 0.73 × 1.13
Mar 31, 2018 16.27% = 0.70 × 1.00 × 27.07% × 0.76 × 1.14
Mar 31, 2017 11.53% = 0.57 × 1.00 × 20.59% × 0.81 × 1.22

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over 2022 year is the decrease in operating profitability measured by EBIT margin ratio.

Two-Component Disaggregation of ROA

Abiomed Inc., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Mar 31, 2022 8.16% = 13.23% × 0.62
Mar 31, 2021 15.09% = 26.61% × 0.57
Mar 31, 2020 16.69% = 24.14% × 0.69
Mar 31, 2019 24.57% = 33.66% × 0.73
Mar 31, 2018 14.26% = 18.89% × 0.76
Mar 31, 2017 9.47% = 11.70% × 0.81

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over 2022 year is the decrease in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

Abiomed Inc., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Mar 31, 2022 8.16% = 0.72 × 1.00 × 18.47% × 0.62
Mar 31, 2021 15.09% = 0.78 × 1.00 × 34.01% × 0.57
Mar 31, 2020 16.69% = 0.79 × 1.00 × 30.54% × 0.69
Mar 31, 2019 24.57% = 0.98 × 1.00 × 34.23% × 0.73
Mar 31, 2018 14.26% = 0.70 × 1.00 × 27.07% × 0.76
Mar 31, 2017 9.47% = 0.57 × 1.00 × 20.59% × 0.81

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over 2022 year is the decrease in operating profitability measured by EBIT margin ratio.

Disaggregation of Net Profit Margin

Abiomed Inc., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Mar 31, 2022 13.23% = 0.72 × 1.00 × 18.47%
Mar 31, 2021 26.61% = 0.78 × 1.00 × 34.01%
Mar 31, 2020 24.14% = 0.79 × 1.00 × 30.54%
Mar 31, 2019 33.66% = 0.98 × 1.00 × 34.23%
Mar 31, 2018 18.89% = 0.70 × 1.00 × 27.07%
Mar 31, 2017 11.70% = 0.57 × 1.00 × 20.59%

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

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.