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Microsoft Excel LibreOffice Calc


DuPont Analysis: Decomposition of ROE

Difficulty: Beginner


Two-Component Disaggregation of ROE

Cisco Systems Inc., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = ROA × Leverage
Jul 29, 2017 hidden% hidden% hidden
Jul 30, 2016 hidden% hidden% hidden
Jul 25, 2015 hidden% hidden% hidden
Jul 26, 2014 hidden% hidden% hidden
Jul 27, 2013 hidden% hidden% hidden
Jul 28, 2012 hidden% hidden% hidden

Source: Based on data from Cisco Systems Inc. Annual Reports

 

The primary reason for the decrease in Return on Equity (ROE) over 2017 year is the decrease in profitability measured by Return on Assets (ROA).


Three-Component Disaggregation of ROE

Cisco Systems Inc., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = Net Profit Margin × Asset Turnover × Leverage
Jul 29, 2017 hidden% hidden% hidden hidden
Jul 30, 2016 hidden% hidden% hidden hidden
Jul 25, 2015 hidden% hidden% hidden hidden
Jul 26, 2014 hidden% hidden% hidden hidden
Jul 27, 2013 hidden% hidden% hidden hidden
Jul 28, 2012 hidden% hidden% hidden hidden

Source: Based on data from Cisco Systems Inc. Annual Reports

 

The primary reason for the decrease in Return on Equity (ROE) over 2017 year is the decrease in efficiency measured by Asset Turnover.


Five-Component Disaggregation of ROE

Cisco Systems Inc., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Leverage
Jul 29, 2017 hidden% hidden hidden hidden% hidden hidden
Jul 30, 2016 hidden% hidden hidden hidden% hidden hidden
Jul 25, 2015 hidden% hidden hidden hidden% hidden hidden
Jul 26, 2014 hidden% hidden hidden hidden% hidden hidden
Jul 27, 2013 hidden% hidden hidden hidden% hidden hidden
Jul 28, 2012 hidden% hidden hidden hidden% hidden hidden

Source: Based on data from Cisco Systems Inc. Annual Reports

 

The primary reason for the decrease in Return on Equity (ROE) over 2017 year is the decrease in efficiency measured by Asset Turnover.


Two-Way Decomposition of ROA

Cisco Systems Inc., decomposition of ROA

Microsoft Excel LibreOffice Calc
ROA = Net Profit Margin × Asset Turnover
Jul 29, 2017 hidden% hidden% hidden
Jul 30, 2016 hidden% hidden% hidden
Jul 25, 2015 hidden% hidden% hidden
Jul 26, 2014 hidden% hidden% hidden
Jul 27, 2013 hidden% hidden% hidden
Jul 28, 2012 hidden% hidden% hidden

Source: Based on data from Cisco Systems Inc. Annual Reports

 

The primary reason for the decrease in Return on Assets (ROA) over 2017 year is the decrease in Asset Turnover.


Four-Way Decomposition of ROA

Cisco Systems Inc., decomposition of ROA

Microsoft Excel LibreOffice Calc
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Jul 29, 2017 hidden% hidden hidden hidden% hidden
Jul 30, 2016 hidden% hidden hidden hidden% hidden
Jul 25, 2015 hidden% hidden hidden hidden% hidden
Jul 26, 2014 hidden% hidden hidden hidden% hidden
Jul 27, 2013 hidden% hidden hidden hidden% hidden
Jul 28, 2012 hidden% hidden hidden hidden% hidden

Source: Based on data from Cisco Systems Inc. Annual Reports

 

The primary reason for the decrease in Return on Assets (ROA) over 2017 year is the decrease in efficiency measured by Asset Turnover.


Decomposition of Net Profit Margin

Cisco Systems Inc., decomposition of Net Profit Margin

Microsoft Excel LibreOffice Calc
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Jul 29, 2017 hidden% hidden hidden hidden%
Jul 30, 2016 hidden% hidden hidden hidden%
Jul 25, 2015 hidden% hidden hidden hidden%
Jul 26, 2014 hidden% hidden hidden hidden%
Jul 27, 2013 hidden% hidden hidden hidden%
Jul 28, 2012 hidden% hidden hidden hidden%

Source: Based on data from Cisco Systems Inc. Annual Reports

 

The primary reason for the decrease in Net Profit Margin over 2017 year is the decrease in effect of taxes measured by Tax Burden.