Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Apple Inc. (NASDAQ:AAPL)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin

Beginner level

Two-Component Disaggregation of ROE

Apple Inc., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = ROA × Financial Leverage
Sep 26, 2020 87.87% = 17.73% × 4.96
Sep 28, 2019 61.06% = 16.32% × 3.74
Sep 29, 2018 55.56% = 16.28% × 3.41
Sep 30, 2017 36.07% = 12.88% × 2.80
Sep 24, 2016 35.62% = 14.20% × 2.51
Sep 26, 2015 44.74% = 18.38% × 2.43

Based on: 10-K (filing date: 2020-10-30), 10-K (filing date: 2019-10-31), 10-K (filing date: 2018-11-05), 10-K (filing date: 2017-11-03), 10-K (filing date: 2016-10-26), 10-K (filing date: 2015-10-28).

The primary reason for the increase in return on equity ratio (ROE) over 2020 year is the increase in financial leverage ratio.


Three-Component Disaggregation of ROE

Apple Inc., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Sep 26, 2020 87.87% = 20.91% × 0.85 × 4.96
Sep 28, 2019 61.06% = 21.24% × 0.77 × 3.74
Sep 29, 2018 55.56% = 22.41% × 0.73 × 3.41
Sep 30, 2017 36.07% = 21.09% × 0.61 × 2.80
Sep 24, 2016 35.62% = 21.19% × 0.67 × 2.51
Sep 26, 2015 44.74% = 22.85% × 0.80 × 2.43

Based on: 10-K (filing date: 2020-10-30), 10-K (filing date: 2019-10-31), 10-K (filing date: 2018-11-05), 10-K (filing date: 2017-11-03), 10-K (filing date: 2016-10-26), 10-K (filing date: 2015-10-28).

The primary reason for the increase in return on equity ratio (ROE) over 2020 year is the increase in financial leverage ratio.


Five-Component Disaggregation of ROE

Apple Inc., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Sep 26, 2020 87.87% = 0.86 × 0.96 × 25.49% × 0.85 × 4.96
Sep 28, 2019 61.06% = 0.84 × 0.95 × 26.64% × 0.77 × 3.74
Sep 29, 2018 55.56% = 0.82 × 0.96 × 28.67% × 0.73 × 3.41
Sep 30, 2017 36.07% = 0.75 × 0.97 × 28.97% × 0.61 × 2.80
Sep 24, 2016 35.62% = 0.74 × 0.98 × 29.14% × 0.67 × 2.51
Sep 26, 2015 44.74% = 0.74 × 0.99 × 31.34% × 0.80 × 2.43

Based on: 10-K (filing date: 2020-10-30), 10-K (filing date: 2019-10-31), 10-K (filing date: 2018-11-05), 10-K (filing date: 2017-11-03), 10-K (filing date: 2016-10-26), 10-K (filing date: 2015-10-28).

The primary reason for the increase in return on equity ratio (ROE) over 2020 year is the increase in financial leverage ratio.


Two-Component Disaggregation of ROA

Apple Inc., decomposition of ROA

Microsoft Excel LibreOffice Calc
ROA = Net Profit Margin × Asset Turnover
Sep 26, 2020 17.73% = 20.91% × 0.85
Sep 28, 2019 16.32% = 21.24% × 0.77
Sep 29, 2018 16.28% = 22.41% × 0.73
Sep 30, 2017 12.88% = 21.09% × 0.61
Sep 24, 2016 14.20% = 21.19% × 0.67
Sep 26, 2015 18.38% = 22.85% × 0.80

Based on: 10-K (filing date: 2020-10-30), 10-K (filing date: 2019-10-31), 10-K (filing date: 2018-11-05), 10-K (filing date: 2017-11-03), 10-K (filing date: 2016-10-26), 10-K (filing date: 2015-10-28).

The primary reason for the increase in return on assets ratio (ROA) over 2020 year is the increase in asset turnover ratio.


Four-Component Disaggregation of ROA

Apple Inc., decomposition of ROA

Microsoft Excel LibreOffice Calc
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Sep 26, 2020 17.73% = 0.86 × 0.96 × 25.49% × 0.85
Sep 28, 2019 16.32% = 0.84 × 0.95 × 26.64% × 0.77
Sep 29, 2018 16.28% = 0.82 × 0.96 × 28.67% × 0.73
Sep 30, 2017 12.88% = 0.75 × 0.97 × 28.97% × 0.61
Sep 24, 2016 14.20% = 0.74 × 0.98 × 29.14% × 0.67
Sep 26, 2015 18.38% = 0.74 × 0.99 × 31.34% × 0.80

Based on: 10-K (filing date: 2020-10-30), 10-K (filing date: 2019-10-31), 10-K (filing date: 2018-11-05), 10-K (filing date: 2017-11-03), 10-K (filing date: 2016-10-26), 10-K (filing date: 2015-10-28).

The primary reason for the increase in return on assets ratio (ROA) over 2020 year is the increase in efficiency measured by asset turnover ratio.


Disaggregation of Net Profit Margin

Apple Inc., decomposition of net profit margin ratio

Microsoft Excel LibreOffice Calc
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Sep 26, 2020 20.91% = 0.86 × 0.96 × 25.49%
Sep 28, 2019 21.24% = 0.84 × 0.95 × 26.64%
Sep 29, 2018 22.41% = 0.82 × 0.96 × 28.67%
Sep 30, 2017 21.09% = 0.75 × 0.97 × 28.97%
Sep 24, 2016 21.19% = 0.74 × 0.98 × 29.14%
Sep 26, 2015 22.85% = 0.74 × 0.99 × 31.34%

Based on: 10-K (filing date: 2020-10-30), 10-K (filing date: 2019-10-31), 10-K (filing date: 2018-11-05), 10-K (filing date: 2017-11-03), 10-K (filing date: 2016-10-26), 10-K (filing date: 2015-10-28).

The primary reason for the decrease in net profit margin ratio over 2020 year is the decrease in operating profitability measured by EBIT margin ratio.