DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data
Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.
Two-Component Disaggregation of ROE
Booking Holdings Inc., decomposition of ROE (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
- Return on Assets (ROA)
- The ROA shows a generally increasing trend over the observed periods, starting from 2.97% in early 2021 and reaching a peak above 20% in late 2023. After this peak, the ROA remains relatively stable, fluctuating between 15.69% and 21.23% through to late 2025. This upward trend indicates improving efficiency in asset utilization to generate profits, with a particularly strong improvement from mid-2021 through 2023, followed by stabilization at a high level.
- Financial Leverage
- Financial leverage exhibits variability over the quarters, initially ranging between approximately 5.0 and 3.8 during 2021. There is an increasing trend noted from 5.1 to over 9.1 by the end of 2022, followed by a significant spike to a ratio of 23.47 in early 2023. However, data beyond this point is missing, preventing further assessment. The general pattern suggests an increasing use of debt or liabilities to finance assets, with a notable peak that could imply heightened financial risk at the start of 2023.
- Return on Equity (ROE)
- ROE follows an accelerating upward trajectory from 14.76% in early 2021 to a substantially high value of 374.67% by early 2023. This remarkable increase indicates an extraordinary rise in profitability relative to shareholder equity during this time. However, no data is reported beyond this period, limiting the ability to analyze whether this growth was sustained, declined, or stabilized subsequently. The immense increase in ROE alongside rising financial leverage may suggest increased financial risk or leverage effects boosting equity returns.
Three-Component Disaggregation of ROE
Booking Holdings Inc., decomposition of ROE (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
- Net Profit Margin
- The net profit margin exhibits a generally upward trend over the observed periods. Starting from 12.44% in the first quarter of 2021, it drops to a low of 4.15% by the third quarter of 2021, followed by a recovery and gradual increase reaching a peak around the fourth quarter of 2023 with 25.7%. Following this peak, the margin stabilizes somewhat, fluctuating moderately between approximately 19% and 24% from early 2024 through the first half of 2025.
- Asset Turnover
- Asset turnover shows consistent improvement throughout the timeline. Beginning at 0.24 in the first quarter of 2021, it steadily rises to 0.91 by the third quarter of 2025, indicating a progressive increase in the efficiency with which the company's assets generate revenue. Minor fluctuations occur, but the overall trajectory is upward, demonstrating enhanced operational utilization over time.
- Financial Leverage
- Financial leverage data is incomplete beyond the fourth quarter of 2022. Initially, leverage ratios vary, starting around 4.97 in the first quarter of 2021, then fluctuating mildly until a significant spike occurs in the first quarter of 2023, reaching 23.47. This sharp increase suggests a marked rise in the use of debt or other liabilities relative to equity, likely amplifying financial risk. The absence of subsequent data limits analysis of leverage beyond that point.
- Return on Equity (ROE)
- ROE exhibits a notable rise early in the series, increasing from 14.76% in the first quarter of 2021 to an extraordinary 374.67% by the first quarter of 2023. This dramatic escalation coincides with the sharp increase in financial leverage, implying that leverage substantially amplified equity returns. However, ROE data is unavailable after this point, which restricts further analysis of sustained profitability relative to equity.
- Summary Insights
- The company demonstrates improving profitability and asset efficiency over time, as reflected in rising net profit margins and asset turnover ratios. The steep increase in financial leverage and ROE in early 2023 indicates significant leverage use to enhance returns, accompanied by increased financial risk. However, missing data for key financial leverage and ROE metrics in subsequent periods limits the ability to assess longer-term trends related to debt utilization and equity returns. Overall, operational efficiency appears to advance steadily, while financial structure underwent pronounced changes during the observed timeframe.
Five-Component Disaggregation of ROE
Booking Holdings Inc., decomposition of ROE (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
- Tax Burden
- The tax burden ratio demonstrated significant fluctuations over the observed periods. Initially, it decreased from 0.70 to 0.43, then sharply increased to 0.80 by the end of 2021. From 2022 onwards, it remained relatively stable between 0.74 and 0.82, with marginal decreases seen in the later quarters, indicating some consistency in the effective tax rate applied to earnings.
- Interest Burden
- The interest burden ratio exhibited a gradual upward trend from 0.72 in early 2021 to a peak of 0.91 throughout much of 2022 and early 2023. After this peak, a modest decline occurred, dropping to approximately 0.76 by the third quarter of 2025, suggesting an improvement in earnings before interest as a proportion of earnings before interest and taxes over time.
- EBIT Margin
- The EBIT margin showed notable volatility. It started at 24.8% in the first quarter of 2021, declined sharply to around 9.57% by the first quarter of 2022, then recovered significantly, reaching a high of 36.17% in the fourth quarter of 2024. In subsequent periods, it fluctuated slightly but remained strong, indicating improved operating profitability and efficiency in recent years.
- Asset Turnover
- The asset turnover ratio demonstrated a clear upward trajectory over the observed timeframe. Starting at 0.24 in early 2021, it steadily increased to 0.91 by the third quarter of 2025. This trend reflects growing efficiency in utilizing assets to generate revenues, evidencing an enhancement in operational performance.
- Financial Leverage
- Financial leverage exhibited considerable variability. It was relatively stable near 5.0 in early 2021, then climbed to 9.12 by the end of 2022. A significant spike to 23.47 occurred in the first quarter of 2023, after which no data points were available. The substantial increase in leverage in late 2022 and early 2023 implies a heightened reliance on debt financing during this period.
- Return on Equity (ROE)
- ROE experienced dramatic growth within the available data. Starting at 14.76% in the first quarter of 2021, the ratio fell to 6.89% by the third quarter of 2021 but surged to an extraordinary 374.67% by the first quarter of 2023. The large increase correlates with the sharp rise in financial leverage and improvements in EBIT margin and asset turnover, indicating maximized equity returns through leverage and operational effectiveness in these periods. Data beyond the first quarter of 2023 is absent, restricting further trend analysis.
Two-Component Disaggregation of ROA
Booking Holdings Inc., decomposition of ROA (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
- Net Profit Margin
- The net profit margin experienced notable fluctuations over the reported periods. Starting at 12.44% in the first quarter of 2021, it fell sharply to 4.15% by the third quarter of 2021, then gradually increased to peak at 25.7% in the third quarter of 2023. A decline followed thereafter, reaching 19.37% by the third quarter of 2025. Overall, the trend demonstrates cycles of contraction and expansion, with a general upward movement until late 2023, followed by some moderation.
- Asset Turnover
- Asset turnover showed a consistent upward trajectory from 0.24 in the first quarter of 2021 to a high of 0.91 by the third quarter of 2025. Despite minor dips — notably from 0.73 in the third quarter of 2022 down to 0.67 in the fourth quarter of 2022 — the overall pattern indicates improving efficiency in asset utilization over the period.
- Return on Assets (ROA)
- The return on assets initially saw some irregularity, with a low of 1.64% in the third quarter of 2021 following a 4.93% reading in the fourth quarter of 2021. Afterward, ROA rose significantly, reaching a peak of 21.23% in the first quarter of 2025. Post this peak, a decline occurred, with ROA falling to 17.54% by the third quarter of 2025. This metric closely mirrors the trends observed in net profit margin, reflecting the combined effects of profitability and asset management efficiency.
- Overall Insights
- The period under review illustrates an improving operational efficiency and profitability, as evidenced by the rises in asset turnover and net profit margin. The pattern of increasing ROA aligns with these improvements, signaling effective use of assets to generate earnings. Despite some volatility, the underlying trend suggests progress in financial performance, albeit with signs of stabilization or slight decline in the most recent quarters.
Four-Component Disaggregation of ROA
Booking Holdings Inc., decomposition of ROA (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
- Tax Burden
- The tax burden ratio shows considerable fluctuation in the earlier periods with a low of 0.43 and a high of 0.8 within 2021. From 2022 onward, it stabilizes around the high 0.7 to low 0.8 range, indicating a more consistent effective tax rate on earnings in recent quarters. The slight decline toward 0.77 in the latest period suggests minor improvements in tax efficiency or changes in tax strategy.
- Interest Burden
- The interest burden ratio demonstrates an overall upward trend from 0.72 in early 2021, peaking around 0.91 by the end of 2021 and early 2022, which implies reduced interest expenses relative to earnings before interest and taxes. However, this ratio shows a gradual downward movement starting mid-2023, reaching approximately 0.76 to 0.78 by late 2025. This decline might reflect an incremental increase in interest costs or financing expenses impacting earnings.
- EBIT Margin
- The EBIT margin experiences volatility in the early observed periods, with a low near 9.57% and rebounds to values exceeding 30% in multiple quarters between 2023 and 2025. This pattern denotes a strong recovery and improving operating profitability over time. Although there are minor fluctuations within high margins, overall, the margin remains robust and consistently above 30% in the recent quarters, suggesting effective cost management and pricing power.
- Asset Turnover
- The asset turnover ratio indicates a clear upward trajectory from 0.24 in the first quarter of 2021 to peaks around 0.91 in later periods, illustrating enhanced efficiency in utilizing assets to generate revenue. Despite some minor declines in certain quarters, the trend exhibits substantial operational improvements and asset utilization acceleration over time.
- Return on Assets (ROA)
- ROA shows significant growth across the time span, moving from a low of 1.64% early in the period to well above 15% and even reaching levels over 20% in several quarters by 2024 and 2025. This upward trend correlates with the improved EBIT margin and asset turnover ratios, confirming that operational gains and asset-use efficiency translate into higher profitability. The progression reflects stronger returns generated from asset investments and overall improved financial performance.
Disaggregation of Net Profit Margin
Booking Holdings Inc., decomposition of net profit margin ratio (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
- Tax Burden
- The tax burden ratio exhibits fluctuations over the observed periods. Starting at 0.7, it decreased to a low of 0.43 before rising again and stabilizing around 0.78 to 0.82 in most recent quarters. The trend suggests variability in effective tax rates, followed by a period of relative stability in later periods.
- Interest Burden
- The interest burden shows improvement over time, increasing from 0.72 to a peak of 0.91 during the middle periods, indicating reduced interest expenses relative to earnings before interest and taxes. However, toward the most recent quarters, the ratio declines gradually to about 0.76-0.78, which may signal increasing interest costs again or lower EBIT relative to interest expenses.
- EBIT Margin
- The EBIT margin demonstrates a clear upward trend across the periods. Initially, the margin was relatively low at 13.58%–16.42%, with a dip to 9.57%, followed by consistent growth reaching above 30% in the later quarters. This indicates improving operational efficiency and profitability at the earnings before interest and taxes level.
- Net Profit Margin
- The net profit margin follows a pattern similar to the EBIT margin, starting low at 4.15% to 10.63% and then rising steadily to surpass 20%, with peaks above 25%. While some decline is observed after peak values, the margin remains significantly higher than at the start, signaling improved bottom-line profitability and possibly better cost or tax management over time.