Microsoft Excel LibreOffice Calc

DuPont Analysis: Decomposition of ROE

Difficulty: Beginner


Two-Component Disaggregation of ROE

Broadcom Inc., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = ROA × Leverage
Oct 29, 2017 8.34% 3.11% 2.68
Oct 30, 2016 -9.20% -3.48% 2.64
Nov 1, 2015 28.94% 12.88% 2.25
Nov 2, 2014 8.11% 2.51% 3.23
Nov 3, 2013 19.13% 16.16% 1.18
Oct 28, 2012 23.27% 19.67% 1.18

Source: Based on data from Broadcom Inc. Annual Reports

 


Three-Component Disaggregation of ROE

Broadcom Inc., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = Net Profit Margin × Asset Turnover × Leverage
Oct 29, 2017 8.34% 9.59% 0.32 2.68
Oct 30, 2016 -9.20% -13.13% 0.26 2.64
Nov 1, 2015 28.94% 19.99% 0.64 2.25
Nov 2, 2014 8.11% 6.16% 0.41 3.23
Nov 3, 2013 19.13% 21.90% 0.74 1.18
Oct 28, 2012 23.27% 23.82% 0.83 1.18

Source: Based on data from Broadcom Inc. Annual Reports

 


Five-Component Disaggregation of ROE

Broadcom Inc., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Leverage
Oct 29, 2017 8.34% 0.98 0.79 12.37% 0.32 2.68
Oct 30, 2016 -9.20% -3.87% 0.26 2.64
Nov 1, 2015 28.94% 0.95 0.88 23.90% 0.64 2.25
Nov 2, 2014 8.11% 0.89 0.73 9.51% 0.41 3.23
Nov 3, 2013 19.13% 0.97 1.00 22.62% 0.74 1.18
Oct 28, 2012 23.27% 0.96 1.00 24.79% 0.83 1.18

Source: Based on data from Broadcom Inc. Annual Reports

 


Two-Way Decomposition of ROA

Broadcom Inc., decomposition of ROA

Microsoft Excel LibreOffice Calc
ROA = Net Profit Margin × Asset Turnover
Oct 29, 2017 3.11% 9.59% 0.32
Oct 30, 2016 -3.48% -13.13% 0.26
Nov 1, 2015 12.88% 19.99% 0.64
Nov 2, 2014 2.51% 6.16% 0.41
Nov 3, 2013 16.16% 21.90% 0.74
Oct 28, 2012 19.67% 23.82% 0.83

Source: Based on data from Broadcom Inc. Annual Reports

 


Four-Way Decomposition of ROA

Broadcom Inc., decomposition of ROA

Microsoft Excel LibreOffice Calc
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Oct 29, 2017 3.11% 0.98 0.79 12.37% 0.32
Oct 30, 2016 -3.48% -3.87% 0.26
Nov 1, 2015 12.88% 0.95 0.88 23.90% 0.64
Nov 2, 2014 2.51% 0.89 0.73 9.51% 0.41
Nov 3, 2013 16.16% 0.97 1.00 22.62% 0.74
Oct 28, 2012 19.67% 0.96 1.00 24.79% 0.83

Source: Based on data from Broadcom Inc. Annual Reports

 


Decomposition of Net Profit Margin

Broadcom Inc., decomposition of Net Profit Margin

Microsoft Excel LibreOffice Calc
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Oct 29, 2017 9.59% 0.98 0.79 12.37%
Oct 30, 2016 -13.13% -3.87%
Nov 1, 2015 19.99% 0.95 0.88 23.90%
Nov 2, 2014 6.16% 0.89 0.73 9.51%
Nov 3, 2013 21.90% 0.97 1.00 22.62%
Oct 28, 2012 23.82% 0.96 1.00 24.79%

Source: Based on data from Broadcom Inc. Annual Reports