Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Intel Corp. (NASDAQ:INTC)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin

Beginner level

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Intel Corp., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = ROA × Financial Leverage
Dec 28, 2019 27.16% = 15.42% × 1.76
Dec 29, 2018 28.24% = 16.45% × 1.72
Dec 30, 2017 13.91% = 7.79% × 1.79
Dec 31, 2016 15.58% = 9.10% × 1.71
Dec 26, 2015 18.70% = 11.08% × 1.69

Based on: 10-K (filing date: 2020-01-24), 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-12).

The primary reason for the decrease in return on equity ratio (ROE) over 2019 year is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Intel Corp., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 28, 2019 27.16% = 29.25% × 0.53 × 1.76
Dec 29, 2018 28.24% = 29.72% × 0.55 × 1.72
Dec 30, 2017 13.91% = 15.30% × 0.51 × 1.79
Dec 31, 2016 15.58% = 17.37% × 0.52 × 1.71
Dec 26, 2015 18.70% = 20.63% × 0.54 × 1.69

Based on: 10-K (filing date: 2020-01-24), 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-12).

The primary reason for the decrease in return on equity ratio (ROE) over 2019 year is the decrease in efficiency measured by asset turnover ratio.

Five-Component Disaggregation of ROE

Intel Corp., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 28, 2019 27.16% = 0.87 × 0.98 × 34.11% × 0.53 × 1.76
Dec 29, 2018 28.24% = 0.90 × 0.98 × 33.57% × 0.55 × 1.72
Dec 30, 2017 13.91% = 0.47 × 0.97 × 33.46% × 0.51 × 1.79
Dec 31, 2016 15.58% = 0.80 × 0.95 × 23.02% × 0.52 × 1.71
Dec 26, 2015 18.70% = 0.80 × 0.98 × 26.28% × 0.54 × 1.69

Based on: 10-K (filing date: 2020-01-24), 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-12).

The primary reason for the decrease in return on equity ratio (ROE) over 2019 year is the decrease in efficiency measured by asset turnover ratio.

Two-Component Disaggregation of ROA

Intel Corp., decomposition of ROA

Microsoft Excel LibreOffice Calc
ROA = Net Profit Margin × Asset Turnover
Dec 28, 2019 15.42% = 29.25% × 0.53
Dec 29, 2018 16.45% = 29.72% × 0.55
Dec 30, 2017 7.79% = 15.30% × 0.51
Dec 31, 2016 9.10% = 17.37% × 0.52
Dec 26, 2015 11.08% = 20.63% × 0.54

Based on: 10-K (filing date: 2020-01-24), 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-12).

The primary reason for the decrease in return on assets ratio (ROA) over 2019 year is the decrease in asset turnover ratio.

Four-Component Disaggregation of ROA

Intel Corp., decomposition of ROA

Microsoft Excel LibreOffice Calc
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 28, 2019 15.42% = 0.87 × 0.98 × 34.11% × 0.53
Dec 29, 2018 16.45% = 0.90 × 0.98 × 33.57% × 0.55
Dec 30, 2017 7.79% = 0.47 × 0.97 × 33.46% × 0.51
Dec 31, 2016 9.10% = 0.80 × 0.95 × 23.02% × 0.52
Dec 26, 2015 11.08% = 0.80 × 0.98 × 26.28% × 0.54

Based on: 10-K (filing date: 2020-01-24), 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-12).

The primary reason for the decrease in return on assets ratio (ROA) over 2019 year is the decrease in efficiency measured by asset turnover ratio.

Disaggregation of Net Profit Margin

Intel Corp., decomposition of net profit margin ratio

Microsoft Excel LibreOffice Calc
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 28, 2019 29.25% = 0.87 × 0.98 × 34.11%
Dec 29, 2018 29.72% = 0.90 × 0.98 × 33.57%
Dec 30, 2017 15.30% = 0.47 × 0.97 × 33.46%
Dec 31, 2016 17.37% = 0.80 × 0.95 × 23.02%
Dec 26, 2015 20.63% = 0.80 × 0.98 × 26.28%

Based on: 10-K (filing date: 2020-01-24), 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-12).

The primary reason for the decrease in net profit margin ratio over 2019 year is the decrease in effect of taxes measured by tax burden ratio.