Amazon.com Inc. (AMZN)


DuPont Analysis: Decomposition of ROE
Quarterly Data

Difficulty: Beginner


Two-Component Disaggregation of ROE

Amazon.com Inc., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = ROA × Leverage
Jun 30, 2019 22.80% = 6.32% × 3.61
Mar 31, 2019 24.80% = 6.74% × 3.68
Dec 31, 2018 23.13% = 6.19% × 3.73
Sep 30, 2018 22.75% = 6.20% × 3.67
Jun 30, 2018 17.93% = 4.68% × 3.83
Mar 31, 2018 12.52% = 3.12% × 4.02
Dec 31, 2017 10.95% = 2.31% × 4.74
Sep 30, 2017 7.81% = 1.67% × 4.67
Jun 30, 2017 8.28% = 2.19% × 3.78
Mar 31, 2017 11.91% = 3.19% × 3.74
Dec 31, 2016 12.29% = 2.84% × 4.32
Sep 30, 2016 11.83% = 2.97% × 3.99
Jun 30, 2016 11.68% = 2.97% × 3.93
Mar 31, 2016 7.90% = 1.91% × 4.14
Dec 31, 2015 4.45% = 0.91% × 4.89
Sep 30, 2015 2.64% = 0.58% × 4.52
Jun 30, 2015 -1.60% = -0.36% × 4.46
Mar 31, 2015 -3.73% = -0.81% × 4.61
Dec 31, 2014 -2.24% = -0.44% × 5.07
Sep 30, 2014 = × 3.91
Jun 30, 2014 = × 3.57
Mar 31, 2014 = × 3.52

Based on: 10-Q (filing date: 2019-07-26), 10-Q (filing date: 2019-04-26), 10-K (filing date: 2019-02-01), 10-Q (filing date: 2018-10-26), 10-Q (filing date: 2018-07-27), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-02), 10-Q (filing date: 2017-10-27), 10-Q (filing date: 2017-07-28), 10-Q (filing date: 2017-04-28), 10-K (filing date: 2017-02-10), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-07-29), 10-Q (filing date: 2016-04-29), 10-K (filing date: 2016-01-29), 10-Q (filing date: 2015-10-23), 10-Q (filing date: 2015-07-24), 10-Q (filing date: 2015-04-24), 10-K (filing date: 2015-01-30), 10-Q (filing date: 2014-10-24), 10-Q (filing date: 2014-07-25), 10-Q (filing date: 2014-04-25).

The primary reason for the decrease in Return on Equity (ROE) over Q2 2019 is the decrease in profitability measured by Return on Assets (ROA).


Three-Component Disaggregation of ROE

Amazon.com Inc., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = Net Profit Margin × Asset Turnover × Leverage
Jun 30, 2019 22.80% = 4.80% × 1.32 × 3.61
Mar 31, 2019 24.80% = 4.97% × 1.36 × 3.68
Dec 31, 2018 23.13% = 4.33% × 1.43 × 3.73
Sep 30, 2018 22.75% = 4.03% × 1.54 × 3.67
Jun 30, 2018 17.93% = 3.02% × 1.55 × 3.83
Mar 31, 2018 12.52% = 2.04% × 1.53 × 4.02
Dec 31, 2017 10.95% = 1.71% × 1.35 × 4.74
Sep 30, 2017 7.81% = 1.20% × 1.40 × 4.67
Jun 30, 2017 8.28% = 1.28% × 1.71 × 3.78
Mar 31, 2017 11.91% = 1.81% × 1.76 × 3.74
Dec 31, 2016 12.29% = 1.74% × 1.63 × 4.32
Sep 30, 2016 11.83% = 1.64% × 1.81 × 3.99
Jun 30, 2016 11.68% = 1.60% × 1.85 × 3.93
Mar 31, 2016 7.90% = 1.03% × 1.86 × 4.14
Dec 31, 2015 4.45% = 0.56% × 1.64 × 4.89
Sep 30, 2015 2.64% = 0.33% × 1.79 × 4.52
Jun 30, 2015 -1.60% = -0.20% × 1.83 × 4.46
Mar 31, 2015 -3.73% = -0.44% × 1.84 × 4.61
Dec 31, 2014 -2.24% = -0.27% × 1.63 × 5.07
Sep 30, 2014 = × × 3.91
Jun 30, 2014 = × × 3.57
Mar 31, 2014 = × × 3.52

Based on: 10-Q (filing date: 2019-07-26), 10-Q (filing date: 2019-04-26), 10-K (filing date: 2019-02-01), 10-Q (filing date: 2018-10-26), 10-Q (filing date: 2018-07-27), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-02), 10-Q (filing date: 2017-10-27), 10-Q (filing date: 2017-07-28), 10-Q (filing date: 2017-04-28), 10-K (filing date: 2017-02-10), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-07-29), 10-Q (filing date: 2016-04-29), 10-K (filing date: 2016-01-29), 10-Q (filing date: 2015-10-23), 10-Q (filing date: 2015-07-24), 10-Q (filing date: 2015-04-24), 10-K (filing date: 2015-01-30), 10-Q (filing date: 2014-10-24), 10-Q (filing date: 2014-07-25), 10-Q (filing date: 2014-04-25).

The primary reason for the decrease in Return on Equity (ROE) over Q2 2019 is the decrease in profitability measured by Net Profit Margin.


Five-Component Disaggregation of ROE

Amazon.com Inc., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Leverage
Jun 30, 2019 22.80% = 0.86 × 0.90 × 6.16% × 1.32 × 3.61
Mar 31, 2019 24.80% = 0.87 × 0.90 × 6.29% × 1.36 × 3.68
Dec 31, 2018 23.13% = 0.89 × 0.89 × 5.45% × 1.43 × 3.73
Sep 30, 2018 22.75% = 0.91 × 0.88 × 5.05% × 1.54 × 3.67
Jun 30, 2018 17.93% = 0.94 × 0.84 × 3.82% × 1.55 × 3.83
Mar 31, 2018 12.52% = 0.83 × 0.82 × 3.00% × 1.53 × 4.02
Dec 31, 2017 10.95% = 0.80 × 0.82 × 2.61% × 1.35 × 4.74
Sep 30, 2017 7.81% = 0.62 × 0.83 × 2.32% × 1.40 × 4.67
Jun 30, 2017 8.28% = 0.59 × 0.86 × 2.53% × 1.71 × 3.78
Mar 31, 2017 11.91% = 0.69 × 0.88 × 2.99% × 1.76 × 3.74
Dec 31, 2016 12.29% = 0.62 × 0.89 × 3.15% × 1.63 × 4.32
Sep 30, 2016 11.83% = 0.59 × 0.88 × 3.15% × 1.81 × 3.99
Jun 30, 2016 11.68% = 0.58 × 0.88 × 3.14% × 1.85 × 3.93
Mar 31, 2016 7.90% = 0.46 × 0.85 × 2.63% × 1.86 × 4.14
Dec 31, 2015 4.45% = 0.39 × 0.77 × 1.87% × 1.64 × 4.89
Sep 30, 2015 2.64% = 0.32 × 0.71 × 1.44% × 1.79 × 4.52
Jun 30, 2015 -1.60% = -1.26 × 0.30 × 0.52% × 1.83 × 4.46
Mar 31, 2015 -3.73% = × -5.74 × 0.05% × 1.84 × 4.61
Dec 31, 2014 -2.24% = × -0.54 × 0.15% × 1.63 × 5.07
Sep 30, 2014 = × × × × 3.91
Jun 30, 2014 = × × × × 3.57
Mar 31, 2014 = × × × × 3.52

Based on: 10-Q (filing date: 2019-07-26), 10-Q (filing date: 2019-04-26), 10-K (filing date: 2019-02-01), 10-Q (filing date: 2018-10-26), 10-Q (filing date: 2018-07-27), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-02), 10-Q (filing date: 2017-10-27), 10-Q (filing date: 2017-07-28), 10-Q (filing date: 2017-04-28), 10-K (filing date: 2017-02-10), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-07-29), 10-Q (filing date: 2016-04-29), 10-K (filing date: 2016-01-29), 10-Q (filing date: 2015-10-23), 10-Q (filing date: 2015-07-24), 10-Q (filing date: 2015-04-24), 10-K (filing date: 2015-01-30), 10-Q (filing date: 2014-10-24), 10-Q (filing date: 2014-07-25), 10-Q (filing date: 2014-04-25).

The primary reason for the decrease in Return on Equity (ROE) over Q2 2019 is the decrease in efficiency measured by Asset Turnover.


Two-Way Decomposition of ROA

Amazon.com Inc., decomposition of ROA (quarterly data)

Microsoft Excel LibreOffice Calc
ROA = Net Profit Margin × Asset Turnover
Jun 30, 2019 6.32% = 4.80% × 1.32
Mar 31, 2019 6.74% = 4.97% × 1.36
Dec 31, 2018 6.19% = 4.33% × 1.43
Sep 30, 2018 6.20% = 4.03% × 1.54
Jun 30, 2018 4.68% = 3.02% × 1.55
Mar 31, 2018 3.12% = 2.04% × 1.53
Dec 31, 2017 2.31% = 1.71% × 1.35
Sep 30, 2017 1.67% = 1.20% × 1.40
Jun 30, 2017 2.19% = 1.28% × 1.71
Mar 31, 2017 3.19% = 1.81% × 1.76
Dec 31, 2016 2.84% = 1.74% × 1.63
Sep 30, 2016 2.97% = 1.64% × 1.81
Jun 30, 2016 2.97% = 1.60% × 1.85
Mar 31, 2016 1.91% = 1.03% × 1.86
Dec 31, 2015 0.91% = 0.56% × 1.64
Sep 30, 2015 0.58% = 0.33% × 1.79
Jun 30, 2015 -0.36% = -0.20% × 1.83
Mar 31, 2015 -0.81% = -0.44% × 1.84
Dec 31, 2014 -0.44% = -0.27% × 1.63
Sep 30, 2014 = ×
Jun 30, 2014 = ×
Mar 31, 2014 = ×

Based on: 10-Q (filing date: 2019-07-26), 10-Q (filing date: 2019-04-26), 10-K (filing date: 2019-02-01), 10-Q (filing date: 2018-10-26), 10-Q (filing date: 2018-07-27), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-02), 10-Q (filing date: 2017-10-27), 10-Q (filing date: 2017-07-28), 10-Q (filing date: 2017-04-28), 10-K (filing date: 2017-02-10), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-07-29), 10-Q (filing date: 2016-04-29), 10-K (filing date: 2016-01-29), 10-Q (filing date: 2015-10-23), 10-Q (filing date: 2015-07-24), 10-Q (filing date: 2015-04-24), 10-K (filing date: 2015-01-30), 10-Q (filing date: 2014-10-24), 10-Q (filing date: 2014-07-25), 10-Q (filing date: 2014-04-25).

The primary reason for the decrease in Return on Assets (ROA) over Q2 2019 is the decrease in profitability measured by Net Profit Margin.


Four-Way Decomposition of ROA

Amazon.com Inc., decomposition of ROA (quarterly data)

Microsoft Excel LibreOffice Calc
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Jun 30, 2019 6.32% = 0.86 × 0.90 × 6.16% × 1.32
Mar 31, 2019 6.74% = 0.87 × 0.90 × 6.29% × 1.36
Dec 31, 2018 6.19% = 0.89 × 0.89 × 5.45% × 1.43
Sep 30, 2018 6.20% = 0.91 × 0.88 × 5.05% × 1.54
Jun 30, 2018 4.68% = 0.94 × 0.84 × 3.82% × 1.55
Mar 31, 2018 3.12% = 0.83 × 0.82 × 3.00% × 1.53
Dec 31, 2017 2.31% = 0.80 × 0.82 × 2.61% × 1.35
Sep 30, 2017 1.67% = 0.62 × 0.83 × 2.32% × 1.40
Jun 30, 2017 2.19% = 0.59 × 0.86 × 2.53% × 1.71
Mar 31, 2017 3.19% = 0.69 × 0.88 × 2.99% × 1.76
Dec 31, 2016 2.84% = 0.62 × 0.89 × 3.15% × 1.63
Sep 30, 2016 2.97% = 0.59 × 0.88 × 3.15% × 1.81
Jun 30, 2016 2.97% = 0.58 × 0.88 × 3.14% × 1.85
Mar 31, 2016 1.91% = 0.46 × 0.85 × 2.63% × 1.86
Dec 31, 2015 0.91% = 0.39 × 0.77 × 1.87% × 1.64
Sep 30, 2015 0.58% = 0.32 × 0.71 × 1.44% × 1.79
Jun 30, 2015 -0.36% = -1.26 × 0.30 × 0.52% × 1.83
Mar 31, 2015 -0.81% = × -5.74 × 0.05% × 1.84
Dec 31, 2014 -0.44% = × -0.54 × 0.15% × 1.63
Sep 30, 2014 = × × ×
Jun 30, 2014 = × × ×
Mar 31, 2014 = × × ×

Based on: 10-Q (filing date: 2019-07-26), 10-Q (filing date: 2019-04-26), 10-K (filing date: 2019-02-01), 10-Q (filing date: 2018-10-26), 10-Q (filing date: 2018-07-27), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-02), 10-Q (filing date: 2017-10-27), 10-Q (filing date: 2017-07-28), 10-Q (filing date: 2017-04-28), 10-K (filing date: 2017-02-10), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-07-29), 10-Q (filing date: 2016-04-29), 10-K (filing date: 2016-01-29), 10-Q (filing date: 2015-10-23), 10-Q (filing date: 2015-07-24), 10-Q (filing date: 2015-04-24), 10-K (filing date: 2015-01-30), 10-Q (filing date: 2014-10-24), 10-Q (filing date: 2014-07-25), 10-Q (filing date: 2014-04-25).

The primary reason for the decrease in Return on Assets (ROA) over Q2 2019 is the decrease in efficiency measured by Asset Turnover.


Decomposition of Net Profit Margin

Amazon.com Inc., decomposition of Net Profit Margin (quarterly data)

Microsoft Excel LibreOffice Calc
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Jun 30, 2019 4.80% = 0.86 × 0.90 × 6.16%
Mar 31, 2019 4.97% = 0.87 × 0.90 × 6.29%
Dec 31, 2018 4.33% = 0.89 × 0.89 × 5.45%
Sep 30, 2018 4.03% = 0.91 × 0.88 × 5.05%
Jun 30, 2018 3.02% = 0.94 × 0.84 × 3.82%
Mar 31, 2018 2.04% = 0.83 × 0.82 × 3.00%
Dec 31, 2017 1.71% = 0.80 × 0.82 × 2.61%
Sep 30, 2017 1.20% = 0.62 × 0.83 × 2.32%
Jun 30, 2017 1.28% = 0.59 × 0.86 × 2.53%
Mar 31, 2017 1.81% = 0.69 × 0.88 × 2.99%
Dec 31, 2016 1.74% = 0.62 × 0.89 × 3.15%
Sep 30, 2016 1.64% = 0.59 × 0.88 × 3.15%
Jun 30, 2016 1.60% = 0.58 × 0.88 × 3.14%
Mar 31, 2016 1.03% = 0.46 × 0.85 × 2.63%
Dec 31, 2015 0.56% = 0.39 × 0.77 × 1.87%
Sep 30, 2015 0.33% = 0.32 × 0.71 × 1.44%
Jun 30, 2015 -0.20% = -1.26 × 0.30 × 0.52%
Mar 31, 2015 -0.44% = × -5.74 × 0.05%
Dec 31, 2014 -0.27% = × -0.54 × 0.15%
Sep 30, 2014 = × ×
Jun 30, 2014 = × ×
Mar 31, 2014 = × ×

Based on: 10-Q (filing date: 2019-07-26), 10-Q (filing date: 2019-04-26), 10-K (filing date: 2019-02-01), 10-Q (filing date: 2018-10-26), 10-Q (filing date: 2018-07-27), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-02), 10-Q (filing date: 2017-10-27), 10-Q (filing date: 2017-07-28), 10-Q (filing date: 2017-04-28), 10-K (filing date: 2017-02-10), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-07-29), 10-Q (filing date: 2016-04-29), 10-K (filing date: 2016-01-29), 10-Q (filing date: 2015-10-23), 10-Q (filing date: 2015-07-24), 10-Q (filing date: 2015-04-24), 10-K (filing date: 2015-01-30), 10-Q (filing date: 2014-10-24), 10-Q (filing date: 2014-07-25), 10-Q (filing date: 2014-04-25).

The primary reason for the decrease in Net Profit Margin over Q2 2019 is the decrease in operating profitability measured by EBIT Margin.