.DuPont Analysis: Decomposition of ROE Quarterly Data
Difficulty: Beginner
Decomposing ROE involves expressing net income divided by shareholders' equity as the product of component ratios.
Two-Component Disaggregation of ROE
Costco Wholesale Corp., decomposition of ROE (quarterly data)
| | | | |||
| ROE | = | ROA | × | Leverage | |
|---|---|---|---|---|---|
| May 13, 2018 | % | % | |||
| Feb 18, 2018 | % | % | |||
| Nov 26, 2017 | % | % | |||
| Sep 3, 2017 | % | % | |||
| May 7, 2017 | % | % | |||
| Feb 12, 2017 | % | % | |||
| Nov 20, 2016 | % | % | |||
| Aug 28, 2016 | % | % | |||
| May 8, 2016 | % | % | |||
| Feb 14, 2016 | % | % | |||
| Nov 22, 2015 | % | % | |||
| Aug 30, 2015 | % | % | |||
| May 10, 2015 | % | % | |||
| Feb 15, 2015 | % | % | |||
| Nov 23, 2014 | % | % | |||
| Aug 31, 2014 | % | % | |||
| May 11, 2014 | % | % | |||
| Feb 16, 2014 | % | % | |||
| Nov 24, 2013 | % | % | |||
| Sep 1, 2013 | % | % | |||
| May 12, 2013 | % | % | |||
| Feb 17, 2013 | % | % | |||
| Nov 25, 2012 | % | % | |||
| Sep 2, 2012 | % | % | |||
| May 6, 2012 | % | % | |||
| Feb 12, 2012 | % | % | |||
| Nov 20, 2011 | % | % |
Source: Based on data from Costco Wholesale Corp. Quarterly and Annual Reports
The primary reason for the decrease in Return on Equity (ROE) over Q3 2018 is the decrease in Financial Leverage.
Three-Component Disaggregation of ROE
Costco Wholesale Corp., decomposition of ROE (quarterly data)
| | | | | ||||
| ROE | = | Net Profit Margin | × | Asset Turnover | × | Leverage | |
|---|---|---|---|---|---|---|---|
| May 13, 2018 | % | % | |||||
| Feb 18, 2018 | % | % | |||||
| Nov 26, 2017 | % | % | |||||
| Sep 3, 2017 | % | % | |||||
| May 7, 2017 | % | % | |||||
| Feb 12, 2017 | % | % | |||||
| Nov 20, 2016 | % | % | |||||
| Aug 28, 2016 | % | % | |||||
| May 8, 2016 | % | % | |||||
| Feb 14, 2016 | % | % | |||||
| Nov 22, 2015 | % | % | |||||
| Aug 30, 2015 | % | % | |||||
| May 10, 2015 | % | % | |||||
| Feb 15, 2015 | % | % | |||||
| Nov 23, 2014 | % | % | |||||
| Aug 31, 2014 | % | % | |||||
| May 11, 2014 | % | % | |||||
| Feb 16, 2014 | % | % | |||||
| Nov 24, 2013 | % | % | |||||
| Sep 1, 2013 | % | % | |||||
| May 12, 2013 | % | % | |||||
| Feb 17, 2013 | % | % | |||||
| Nov 25, 2012 | % | % | |||||
| Sep 2, 2012 | % | % | |||||
| May 6, 2012 | % | % | |||||
| Feb 12, 2012 | % | % | |||||
| Nov 20, 2011 | % | % |
Source: Based on data from Costco Wholesale Corp. Quarterly and Annual Reports
The primary reason for the decrease in Return on Equity (ROE) over Q3 2018 is the decrease in Financial Leverage.
Five-Component Disaggregation of ROE
Costco Wholesale Corp., decomposition of ROE (quarterly data)
| | | | | | | ||||||
| ROE | = | Tax Burden | × | Interest Burden | × | EBIT Margin | × | Asset Turnover | × | Leverage | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| May 13, 2018 | % | % | |||||||||
| Feb 18, 2018 | % | % | |||||||||
| Nov 26, 2017 | % | % | |||||||||
| Sep 3, 2017 | % | % | |||||||||
| May 7, 2017 | % | % | |||||||||
| Feb 12, 2017 | % | % | |||||||||
| Nov 20, 2016 | % | % | |||||||||
| Aug 28, 2016 | % | % | |||||||||
| May 8, 2016 | % | % | |||||||||
| Feb 14, 2016 | % | % | |||||||||
| Nov 22, 2015 | % | % | |||||||||
| Aug 30, 2015 | % | % | |||||||||
| May 10, 2015 | % | % | |||||||||
| Feb 15, 2015 | % | % | |||||||||
| Nov 23, 2014 | % | % | |||||||||
| Aug 31, 2014 | % | % | |||||||||
| May 11, 2014 | % | % | |||||||||
| Feb 16, 2014 | % | % | |||||||||
| Nov 24, 2013 | % | % | |||||||||
| Sep 1, 2013 | % | % | |||||||||
| May 12, 2013 | % | % | |||||||||
| Feb 17, 2013 | % | % | |||||||||
| Nov 25, 2012 | % | % | |||||||||
| Sep 2, 2012 | % | % | |||||||||
| May 6, 2012 | % | % | |||||||||
| Feb 12, 2012 | % | % | |||||||||
| Nov 20, 2011 | % | % |
Source: Based on data from Costco Wholesale Corp. Quarterly and Annual Reports
The primary reason for the decrease in Return on Equity (ROE) over Q3 2018 is the decrease in Financial Leverage.
Two-Way Decomposition of ROA
Costco Wholesale Corp., decomposition of ROA (quarterly data)
| | | | |||
| ROA | = | Net Profit Margin | × | Asset Turnover | |
|---|---|---|---|---|---|
| May 13, 2018 | % | % | |||
| Feb 18, 2018 | % | % | |||
| Nov 26, 2017 | % | % | |||
| Sep 3, 2017 | % | % | |||
| May 7, 2017 | % | % | |||
| Feb 12, 2017 | % | % | |||
| Nov 20, 2016 | % | % | |||
| Aug 28, 2016 | % | % | |||
| May 8, 2016 | % | % | |||
| Feb 14, 2016 | % | % | |||
| Nov 22, 2015 | % | % | |||
| Aug 30, 2015 | % | % | |||
| May 10, 2015 | % | % | |||
| Feb 15, 2015 | % | % | |||
| Nov 23, 2014 | % | % | |||
| Aug 31, 2014 | % | % | |||
| May 11, 2014 | % | % | |||
| Feb 16, 2014 | % | % | |||
| Nov 24, 2013 | % | % | |||
| Sep 1, 2013 | % | % | |||
| May 12, 2013 | % | % | |||
| Feb 17, 2013 | % | % | |||
| Nov 25, 2012 | % | % | |||
| Sep 2, 2012 | % | % | |||
| May 6, 2012 | % | % | |||
| Feb 12, 2012 | % | % | |||
| Nov 20, 2011 | % | % |
Source: Based on data from Costco Wholesale Corp. Quarterly and Annual Reports
The primary reason for the decrease in Return on Assets (ROA) over Q3 2018 is the decrease in profitability measured by Net Profit Margin.
Four-Way Decomposition of ROA
Costco Wholesale Corp., decomposition of ROA (quarterly data)
| | | | | | |||||
| ROA | = | Tax Burden | × | Interest Burden | × | EBIT Margin | × | Asset Turnover | |
|---|---|---|---|---|---|---|---|---|---|
| May 13, 2018 | % | % | |||||||
| Feb 18, 2018 | % | % | |||||||
| Nov 26, 2017 | % | % | |||||||
| Sep 3, 2017 | % | % | |||||||
| May 7, 2017 | % | % | |||||||
| Feb 12, 2017 | % | % | |||||||
| Nov 20, 2016 | % | % | |||||||
| Aug 28, 2016 | % | % | |||||||
| May 8, 2016 | % | % | |||||||
| Feb 14, 2016 | % | % | |||||||
| Nov 22, 2015 | % | % | |||||||
| Aug 30, 2015 | % | % | |||||||
| May 10, 2015 | % | % | |||||||
| Feb 15, 2015 | % | % | |||||||
| Nov 23, 2014 | % | % | |||||||
| Aug 31, 2014 | % | % | |||||||
| May 11, 2014 | % | % | |||||||
| Feb 16, 2014 | % | % | |||||||
| Nov 24, 2013 | % | % | |||||||
| Sep 1, 2013 | % | % | |||||||
| May 12, 2013 | % | % | |||||||
| Feb 17, 2013 | % | % | |||||||
| Nov 25, 2012 | % | % | |||||||
| Sep 2, 2012 | % | % | |||||||
| May 6, 2012 | % | % | |||||||
| Feb 12, 2012 | % | % | |||||||
| Nov 20, 2011 | % | % |
Source: Based on data from Costco Wholesale Corp. Quarterly and Annual Reports
The primary reason for the decrease in Return on Assets (ROA) over Q3 2018 is the decrease in effect of taxes measured by Tax Burden.
Decomposition of Net Profit Margin
Costco Wholesale Corp., decomposition of Net Profit Margin (quarterly data)
| | | | | ||||
| Net Profit Margin | = | Tax Burden | × | Interest Burden | × | EBIT Margin | |
|---|---|---|---|---|---|---|---|
| May 13, 2018 | % | % | |||||
| Feb 18, 2018 | % | % | |||||
| Nov 26, 2017 | % | % | |||||
| Sep 3, 2017 | % | % | |||||
| May 7, 2017 | % | % | |||||
| Feb 12, 2017 | % | % | |||||
| Nov 20, 2016 | % | % | |||||
| Aug 28, 2016 | % | % | |||||
| May 8, 2016 | % | % | |||||
| Feb 14, 2016 | % | % | |||||
| Nov 22, 2015 | % | % | |||||
| Aug 30, 2015 | % | % | |||||
| May 10, 2015 | % | % | |||||
| Feb 15, 2015 | % | % | |||||
| Nov 23, 2014 | % | % | |||||
| Aug 31, 2014 | % | % | |||||
| May 11, 2014 | % | % | |||||
| Feb 16, 2014 | % | % | |||||
| Nov 24, 2013 | % | % | |||||
| Sep 1, 2013 | % | % | |||||
| May 12, 2013 | % | % | |||||
| Feb 17, 2013 | % | % | |||||
| Nov 25, 2012 | % | % | |||||
| Sep 2, 2012 | % | % | |||||
| May 6, 2012 | % | % | |||||
| Feb 12, 2012 | % | % | |||||
| Nov 20, 2011 | % | % |
Source: Based on data from Costco Wholesale Corp. Quarterly and Annual Reports
The primary reason for the decrease in Net Profit Margin over Q3 2018 is the decrease in effect of taxes measured by Tax Burden.
