Stock Analysis on Net
Stock Analysis on Net

Activision Blizzard Inc. (NASDAQ:ATVI)

This company has been moved to the archive! The financial data has not been updated since November 2, 2021.

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

Activision Blizzard Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Sep 30, 2021 15.59% = 11.02% × 1.41
Jun 30, 2021 16.01% = 11.06% × 1.45
Mar 31, 2021 15.07% = 9.87% × 1.53
Dec 31, 2020 14.61% = 9.51% × 1.54
Sep 30, 2020 15.39% = 10.26% × 1.50
Jun 30, 2020 13.25% = 8.97% × 1.48
Mar 31, 2020 11.99% = 7.96% × 1.51
Dec 31, 2019 11.74% = 7.57% × 1.55
Sep 30, 2019 13.32% = 9.15% × 1.46
Jun 30, 2019 14.08% = 9.64% × 1.46
Mar 31, 2019 15.18% = 9.81% × 1.55
Dec 31, 2018 15.96% = 10.17% × 1.57
Sep 30, 2018 5.42% = 3.46% × 1.57
Jun 30, 2018 4.89% = 2.82% × 1.74
Mar 31, 2018 3.53% = 1.89% × 1.87
Dec 31, 2017 2.89% = 1.46% × 1.97
Sep 30, 2017 11.14% = 6.26% × 1.78
Jun 30, 2017 11.54% = 6.67% × 1.73
Mar 31, 2017 10.91% = 6.08% × 1.79
Dec 31, 2016 10.59% = 5.54% × 1.91
Sep 30, 2016 — = — × 2.08
Jun 30, 2016 — = — × 1.94
Mar 31, 2016 — = — × 2.07

Based on: 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), 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).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2021 is the decrease in financial leverage ratio.

Three-Component Disaggregation of ROE

Activision Blizzard Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Sep 30, 2021 15.59% = 29.18% × 0.38 × 1.41
Jun 30, 2021 16.01% = 29.17% × 0.38 × 1.45
Mar 31, 2021 15.07% = 26.96% × 0.37 × 1.53
Dec 31, 2020 14.61% = 27.17% × 0.35 × 1.54
Sep 30, 2020 15.39% = 28.89% × 0.36 × 1.50
Jun 30, 2020 13.25% = 25.94% × 0.35 × 1.48
Mar 31, 2020 11.99% = 24.19% × 0.33 × 1.51
Dec 31, 2019 11.74% = 23.16% × 0.33 × 1.55
Sep 30, 2019 13.32% = 23.67% × 0.39 × 1.46
Jun 30, 2019 14.08% = 23.70% × 0.41 × 1.46
Mar 31, 2019 15.18% = 23.91% × 0.41 × 1.55
Dec 31, 2018 15.96% = 24.17% × 0.42 × 1.57
Sep 30, 2018 5.42% = 8.07% × 0.43 × 1.57
Jun 30, 2018 4.89% = 6.96% × 0.40 × 1.74
Mar 31, 2018 3.53% = 4.78% × 0.39 × 1.87
Dec 31, 2017 2.89% = 3.89% × 0.38 × 1.97
Sep 30, 2017 11.14% = 15.88% × 0.39 × 1.78
Jun 30, 2017 11.54% = 16.15% × 0.41 × 1.73
Mar 31, 2017 10.91% = 14.96% × 0.41 × 1.79
Dec 31, 2016 10.59% = 14.62% × 0.38 × 1.91
Sep 30, 2016 — = — × — × 2.08
Jun 30, 2016 — = — × — × 1.94
Mar 31, 2016 — = — × — × 2.07

Based on: 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), 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).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2021 is the decrease in financial leverage ratio.

Two-Component Disaggregation of ROA

Activision Blizzard Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Sep 30, 2021 11.02% = 29.18% × 0.38
Jun 30, 2021 11.06% = 29.17% × 0.38
Mar 31, 2021 9.87% = 26.96% × 0.37
Dec 31, 2020 9.51% = 27.17% × 0.35
Sep 30, 2020 10.26% = 28.89% × 0.36
Jun 30, 2020 8.97% = 25.94% × 0.35
Mar 31, 2020 7.96% = 24.19% × 0.33
Dec 31, 2019 7.57% = 23.16% × 0.33
Sep 30, 2019 9.15% = 23.67% × 0.39
Jun 30, 2019 9.64% = 23.70% × 0.41
Mar 31, 2019 9.81% = 23.91% × 0.41
Dec 31, 2018 10.17% = 24.17% × 0.42
Sep 30, 2018 3.46% = 8.07% × 0.43
Jun 30, 2018 2.82% = 6.96% × 0.40
Mar 31, 2018 1.89% = 4.78% × 0.39
Dec 31, 2017 1.46% = 3.89% × 0.38
Sep 30, 2017 6.26% = 15.88% × 0.39
Jun 30, 2017 6.67% = 16.15% × 0.41
Mar 31, 2017 6.08% = 14.96% × 0.41
Dec 31, 2016 5.54% = 14.62% × 0.38
Sep 30, 2016 — = — × —
Jun 30, 2016 — = — × —
Mar 31, 2016 — = — × —

Based on: 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), 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).

The primary reason for the decrease in return on assets ratio (ROA) over Q3 2021 is the decrease in asset turnover ratio.