Microsoft Excel LibreOffice Calc

DuPont Analysis: Decomposition of ROE

Difficulty: Beginner


Two-Component Disaggregation of ROE

Comcast Corp., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = ROA × Leverage
Dec 31, 2017 33.11% 12.15% 2.72
Dec 31, 2016 16.12% 4.82% 3.35
Dec 31, 2015 15.62% 4.90% 3.19
Dec 31, 2014 15.90% 5.26% 3.02
Dec 31, 2013 13.45% 4.29% 3.13

Source: Based on data from Comcast Corp. Annual Reports

 

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


Three-Component Disaggregation of ROE

Comcast Corp., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = Net Profit Margin × Asset Turnover × Leverage
Dec 31, 2017 33.11% 26.87% 0.45 2.72
Dec 31, 2016 16.12% 10.81% 0.45 3.35
Dec 31, 2015 15.62% 10.96% 0.45 3.19
Dec 31, 2014 15.90% 12.18% 0.43 3.02
Dec 31, 2013 13.45% 10.54% 0.41 3.13

Source: Based on data from Comcast Corp. Annual Reports

 

The primary reason for the increase in Return on Equity (ROE) over 2017 year is the increase in profitability measured by Net Profit Margin.


Five-Component Disaggregation of ROE

Comcast Corp., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Leverage
Dec 31, 2017 33.11% 1.50 0.83 21.56% 0.45 2.72
Dec 31, 2016 16.12% 0.62 0.83 21.08% 0.45 3.35
Dec 31, 2015 15.62% 0.62 0.83 21.24% 0.45 3.19
Dec 31, 2014 15.90% 0.68 0.82 21.62% 0.43 3.02
Dec 31, 2013 13.45% 0.63 0.81 20.68% 0.41 3.13

Source: Based on data from Comcast Corp. Annual Reports

 

The primary reason for the increase in Return on Equity (ROE) over 2017 year is the increase in effect of taxes measured by Tax Burden.


Two-Way Decomposition of ROA

Comcast Corp., decomposition of ROA

Microsoft Excel LibreOffice Calc
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2017 12.15% 26.87% 0.45
Dec 31, 2016 4.82% 10.81% 0.45
Dec 31, 2015 4.90% 10.96% 0.45
Dec 31, 2014 5.26% 12.18% 0.43
Dec 31, 2013 4.29% 10.54% 0.41

Source: Based on data from Comcast Corp. Annual Reports

 

The primary reason for the increase in Return on Assets (ROA) over 2017 year is the increase in profitability measured by Net Profit Margin.


Four-Way Decomposition of ROA

Comcast Corp., decomposition of ROA

Microsoft Excel LibreOffice Calc
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2017 12.15% 1.50 0.83 21.56% 0.45
Dec 31, 2016 4.82% 0.62 0.83 21.08% 0.45
Dec 31, 2015 4.90% 0.62 0.83 21.24% 0.45
Dec 31, 2014 5.26% 0.68 0.82 21.62% 0.43
Dec 31, 2013 4.29% 0.63 0.81 20.68% 0.41

Source: Based on data from Comcast Corp. Annual Reports

 

The primary reason for the increase in Return on Assets (ROA) over 2017 year is the increase in effect of taxes measured by Tax Burden.


Decomposition of Net Profit Margin

Comcast Corp., decomposition of Net Profit Margin

Microsoft Excel LibreOffice Calc
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2017 26.87% 1.50 0.83 21.56%
Dec 31, 2016 10.81% 0.62 0.83 21.08%
Dec 31, 2015 10.96% 0.62 0.83 21.24%
Dec 31, 2014 12.18% 0.68 0.82 21.62%
Dec 31, 2013 10.54% 0.63 0.81 20.68%

Source: Based on data from Comcast Corp. Annual Reports

 

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