Microsoft Excel LibreOffice Calc

DuPont Analysis: Decomposition of ROE
Quarterly Data

Difficulty: Beginner


Two-Component Disaggregation of ROE

Biogen Inc., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = ROA × Leverage
Mar 31, 2018 21.09% 11.36% 1.86
Dec 31, 2017 20.13% 10.73% 1.88
Sep 30, 2017 27.10% 15.11% 1.79
Jun 30, 2017 28.42% 15.13% 1.88
Mar 31, 2017 30.31% 16.42% 1.85
Dec 31, 2016 30.50% 16.19% 1.88
Sep 30, 2016 32.06% 17.58% 1.82
Jun 30, 2016 33.48% 17.75% 1.89
Mar 31, 2016 35.78% 17.87% 2.00
Dec 31, 2015 37.84% 18.19% 2.08
Sep 30, 2015 34.04% 17.36% 1.96
Jun 30, 2015 27.76% 20.83% 1.33
Mar 31, 2015 28.09% 21.53% 1.30
Dec 31, 2014 27.15% 20.50% 1.32
Sep 30, 2014 24.06% 18.31% 1.31
Jun 30, 2014 22.38% 16.56% 1.35
Mar 31, 2014 20.97% 15.66% 1.34
Dec 31, 2013 21.60% 15.70% 1.38
Sep 30, 2013 % % 1.38
Jun 30, 2013 % % 1.37
Mar 31, 2013 % % 1.39

Source: Based on data from Biogen Inc. Quarterly and Annual Reports

 

The primary reason for the increase in Return on Equity (ROE) over Q1 2018 is the increase in profitability measured by Return on Assets (ROA).


Three-Component Disaggregation of ROE

Biogen Inc., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = Net Profit Margin × Asset Turnover × Leverage
Mar 31, 2018 21.09% 23.54% 0.48 1.86
Dec 31, 2017 20.13% 20.69% 0.52 1.88
Sep 30, 2017 27.10% 29.44% 0.51 1.79
Jun 30, 2017 28.42% 28.10% 0.54 1.88
Mar 31, 2017 30.31% 30.17% 0.54 1.85
Dec 31, 2016 30.50% 32.34% 0.50 1.88
Sep 30, 2016 32.06% 34.03% 0.52 1.82
Jun 30, 2016 33.48% 33.97% 0.52 1.89
Mar 31, 2016 35.78% 33.79% 0.53 2.00
Dec 31, 2015 37.84% 32.95% 0.55 2.08
Sep 30, 2015 34.04% 34.06% 0.51 1.96
Jun 30, 2015 27.76% 33.89% 0.61 1.33
Mar 31, 2015 28.09% 32.36% 0.67 1.30
Dec 31, 2014 27.15% 30.25% 0.68 1.32
Sep 30, 2014 24.06% 27.79% 0.66 1.31
Jun 30, 2014 22.38% 25.64% 0.65 1.35
Mar 31, 2014 20.97% 25.05% 0.63 1.34
Dec 31, 2013 21.60% 26.87% 0.58 1.38
Sep 30, 2013 % % 1.38
Jun 30, 2013 % % 1.37
Mar 31, 2013 % % 1.39

Source: Based on data from Biogen Inc. Quarterly and Annual Reports

 

The primary reason for the increase in Return on Equity (ROE) over Q1 2018 is the increase in profitability measured by Net Profit Margin.


Two-Way Decomposition of ROA

Biogen Inc., decomposition of ROA (quarterly data)

Microsoft Excel LibreOffice Calc
ROA = Net Profit Margin × Asset Turnover
Mar 31, 2018 11.36% 23.54% 0.48
Dec 31, 2017 10.73% 20.69% 0.52
Sep 30, 2017 15.11% 29.44% 0.51
Jun 30, 2017 15.13% 28.10% 0.54
Mar 31, 2017 16.42% 30.17% 0.54
Dec 31, 2016 16.19% 32.34% 0.50
Sep 30, 2016 17.58% 34.03% 0.52
Jun 30, 2016 17.75% 33.97% 0.52
Mar 31, 2016 17.87% 33.79% 0.53
Dec 31, 2015 18.19% 32.95% 0.55
Sep 30, 2015 17.36% 34.06% 0.51
Jun 30, 2015 20.83% 33.89% 0.61
Mar 31, 2015 21.53% 32.36% 0.67
Dec 31, 2014 20.50% 30.25% 0.68
Sep 30, 2014 18.31% 27.79% 0.66
Jun 30, 2014 16.56% 25.64% 0.65
Mar 31, 2014 15.66% 25.05% 0.63
Dec 31, 2013 15.70% 26.87% 0.58
Sep 30, 2013 % %
Jun 30, 2013 % %
Mar 31, 2013 % %

Source: Based on data from Biogen Inc. Quarterly and Annual Reports

 

The primary reason for the increase in Return on Assets (ROA) over Q1 2018 is the increase in profitability measured by Net Profit Margin.