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Microsoft Excel LibreOffice Calc


DuPont Analysis: Decomposition of ROE

Difficulty: Beginner


Two-Component Disaggregation of ROE

Amazon.com Inc., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = ROA × Leverage
Dec 31, 2017 hidden% hidden% hidden
Dec 31, 2016 hidden% hidden% hidden
Dec 31, 2015 hidden% hidden% hidden
Dec 31, 2014 hidden% hidden% hidden
Dec 31, 2013 hidden% hidden% hidden

Source: Based on data from Amazon.com Inc. Annual Reports

 

The primary reason for the decrease in Return on Equity (ROE) over 2017 year is the decrease in profitability measured by Return on Assets (ROA).


Three-Component Disaggregation of ROE

Amazon.com Inc., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = Net Profit Margin × Asset Turnover × Leverage
Dec 31, 2017 hidden% hidden% hidden hidden
Dec 31, 2016 hidden% hidden% hidden hidden
Dec 31, 2015 hidden% hidden% hidden hidden
Dec 31, 2014 hidden% hidden% hidden hidden
Dec 31, 2013 hidden% hidden% hidden hidden

Source: Based on data from Amazon.com Inc. Annual Reports

 

The primary reason for the decrease in Return on Equity (ROE) over 2017 year is the decrease in efficiency measured by Asset Turnover.


Five-Component Disaggregation of ROE

Amazon.com Inc., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Leverage
Dec 31, 2017 hidden% hidden hidden hidden% hidden hidden
Dec 31, 2016 hidden% hidden hidden hidden% hidden hidden
Dec 31, 2015 hidden% hidden hidden hidden% hidden hidden
Dec 31, 2014 hidden% hidden hidden hidden% hidden hidden
Dec 31, 2013 hidden% hidden hidden hidden% hidden hidden

Source: Based on data from Amazon.com Inc. Annual Reports

 

The primary reason for the decrease in Return on Equity (ROE) over 2017 year is the decrease in operating profitability measured by EBIT Margin.


Two-Way Decomposition of ROA

Amazon.com Inc., decomposition of ROA

Microsoft Excel LibreOffice Calc
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2017 hidden% hidden% hidden
Dec 31, 2016 hidden% hidden% hidden
Dec 31, 2015 hidden% hidden% hidden
Dec 31, 2014 hidden% hidden% hidden
Dec 31, 2013 hidden% hidden% hidden

Source: Based on data from Amazon.com Inc. Annual Reports

 

The primary reason for the decrease in Return on Assets (ROA) over 2017 year is the decrease in Asset Turnover.


Four-Way Decomposition of ROA

Amazon.com Inc., decomposition of ROA

Microsoft Excel LibreOffice Calc
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2017 hidden% hidden hidden hidden% hidden
Dec 31, 2016 hidden% hidden hidden hidden% hidden
Dec 31, 2015 hidden% hidden hidden hidden% hidden
Dec 31, 2014 hidden% hidden hidden hidden% hidden
Dec 31, 2013 hidden% hidden hidden hidden% hidden

Source: Based on data from Amazon.com Inc. Annual Reports

 

The primary reason for the decrease in Return on Assets (ROA) over 2017 year is the decrease in operating profitability measured by EBIT Margin.


Decomposition of Net Profit Margin

Amazon.com Inc., decomposition of Net Profit Margin

Microsoft Excel LibreOffice Calc
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2017 hidden% hidden hidden hidden%
Dec 31, 2016 hidden% hidden hidden hidden%
Dec 31, 2015 hidden% hidden hidden hidden%
Dec 31, 2014 hidden% hidden hidden hidden%
Dec 31, 2013 hidden% hidden hidden hidden%

Source: Based on data from Amazon.com Inc. Annual Reports

 

The primary reason for the decrease in Net Profit Margin over 2017 year is the decrease in operating profitability measured by EBIT Margin.