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Intel Corp. (NASDAQ:INTC)

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

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 (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = ROA × Financial Leverage
Dec 28, 2019 27.16% = 15.42% × 1.76
Sep 28, 2019 26.05% = 14.46% × 1.80
Jun 29, 2019 26.35% = 15.10% × 1.74
Mar 30, 2019 27.93% = 15.89% × 1.76
Dec 29, 2018 28.24% = 16.45% × 1.72
Sep 29, 2018 21.22% = 11.83% × 1.79
Jun 30, 2018 18.97% = 10.55% × 1.80
Mar 31, 2018 15.81% = 8.62% × 1.83
Dec 30, 2017 13.91% = 7.79% × 1.79
Sep 30, 2017 19.52% = 10.90% × 1.79
Jul 1, 2017 18.52% = 10.41% × 1.78
Apr 1, 2017 16.81% = 9.71% × 1.73
Dec 31, 2016 15.58% = 9.10% × 1.71
Oct 1, 2016 16.43% = 9.24% × 1.78
Jul 2, 2016 16.46% = 9.19% × 1.79
Apr 2, 2016 18.76% = 10.88% × 1.72
Dec 26, 2015 18.70% = 11.08% × 1.69
Sep 26, 2015 — = — × 1.73
Jun 27, 2015 — = — × 1.57
Mar 28, 2015 — = — × 1.63

Based on: 10-K (filing date: 2020-01-24), 10-Q (filing date: 2019-10-25), 10-Q (filing date: 2019-07-26), 10-Q (filing date: 2019-04-26), 10-K (filing date: 2019-02-01), 10-Q (filing date: 2018-10-26), 10-Q (filing date: 2018-07-27), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-16), 10-Q (filing date: 2017-10-26), 10-Q (filing date: 2017-07-27), 10-Q (filing date: 2017-04-27), 10-K (filing date: 2017-02-17), 10-Q (filing date: 2016-10-31), 10-Q (filing date: 2016-08-01), 10-Q (filing date: 2016-05-02), 10-K (filing date: 2016-02-12), 10-Q (filing date: 2015-10-28), 10-Q (filing date: 2015-07-27), 10-Q (filing date: 2015-04-27).

The primary reason for the increase in return on equity ratio (ROE) over Q4 2019 is the increase in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Intel Corp., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 28, 2019 27.16% = 29.25% × 0.53 × 1.76
Sep 28, 2019 26.05% = 27.46% × 0.53 × 1.80
Jun 29, 2019 26.35% = 28.05% × 0.54 × 1.74
Mar 30, 2019 27.93% = 29.04% × 0.55 × 1.76
Dec 29, 2018 28.24% = 29.72% × 0.55 × 1.72
Sep 29, 2018 21.22% = 21.91% × 0.54 × 1.79
Jun 30, 2018 18.97% = 20.06% × 0.53 × 1.80
Mar 31, 2018 15.81% = 17.32% × 0.50 × 1.83
Dec 30, 2017 13.91% = 15.30% × 0.51 × 1.79
Sep 30, 2017 19.52% = 22.31% × 0.49 × 1.79
Jul 1, 2017 18.52% = 20.60% × 0.51 × 1.78
Apr 1, 2017 16.81% = 18.57% × 0.52 × 1.73
Dec 31, 2016 15.58% = 17.37% × 0.52 × 1.71
Oct 1, 2016 16.43% = 17.90% × 0.52 × 1.78
Jul 2, 2016 16.46% = 17.84% × 0.52 × 1.79
Apr 2, 2016 18.76% = 20.39% × 0.53 × 1.72
Dec 26, 2015 18.70% = 20.63% × 0.54 × 1.69
Sep 26, 2015 — = — × — × 1.73
Jun 27, 2015 — = — × — × 1.57
Mar 28, 2015 — = — × — × 1.63

Based on: 10-K (filing date: 2020-01-24), 10-Q (filing date: 2019-10-25), 10-Q (filing date: 2019-07-26), 10-Q (filing date: 2019-04-26), 10-K (filing date: 2019-02-01), 10-Q (filing date: 2018-10-26), 10-Q (filing date: 2018-07-27), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-16), 10-Q (filing date: 2017-10-26), 10-Q (filing date: 2017-07-27), 10-Q (filing date: 2017-04-27), 10-K (filing date: 2017-02-17), 10-Q (filing date: 2016-10-31), 10-Q (filing date: 2016-08-01), 10-Q (filing date: 2016-05-02), 10-K (filing date: 2016-02-12), 10-Q (filing date: 2015-10-28), 10-Q (filing date: 2015-07-27), 10-Q (filing date: 2015-04-27).

The primary reason for the increase in return on equity ratio (ROE) over Q4 2019 is the increase in profitability measured by net profit margin ratio.

Two-Component Disaggregation of ROA

Intel Corp., decomposition of ROA (quarterly data)

Microsoft Excel LibreOffice Calc
ROA = Net Profit Margin × Asset Turnover
Dec 28, 2019 15.42% = 29.25% × 0.53
Sep 28, 2019 14.46% = 27.46% × 0.53
Jun 29, 2019 15.10% = 28.05% × 0.54
Mar 30, 2019 15.89% = 29.04% × 0.55
Dec 29, 2018 16.45% = 29.72% × 0.55
Sep 29, 2018 11.83% = 21.91% × 0.54
Jun 30, 2018 10.55% = 20.06% × 0.53
Mar 31, 2018 8.62% = 17.32% × 0.50
Dec 30, 2017 7.79% = 15.30% × 0.51
Sep 30, 2017 10.90% = 22.31% × 0.49
Jul 1, 2017 10.41% = 20.60% × 0.51
Apr 1, 2017 9.71% = 18.57% × 0.52
Dec 31, 2016 9.10% = 17.37% × 0.52
Oct 1, 2016 9.24% = 17.90% × 0.52
Jul 2, 2016 9.19% = 17.84% × 0.52
Apr 2, 2016 10.88% = 20.39% × 0.53
Dec 26, 2015 11.08% = 20.63% × 0.54
Sep 26, 2015 — = — × —
Jun 27, 2015 — = — × —
Mar 28, 2015 — = — × —

Based on: 10-K (filing date: 2020-01-24), 10-Q (filing date: 2019-10-25), 10-Q (filing date: 2019-07-26), 10-Q (filing date: 2019-04-26), 10-K (filing date: 2019-02-01), 10-Q (filing date: 2018-10-26), 10-Q (filing date: 2018-07-27), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-16), 10-Q (filing date: 2017-10-26), 10-Q (filing date: 2017-07-27), 10-Q (filing date: 2017-04-27), 10-K (filing date: 2017-02-17), 10-Q (filing date: 2016-10-31), 10-Q (filing date: 2016-08-01), 10-Q (filing date: 2016-05-02), 10-K (filing date: 2016-02-12), 10-Q (filing date: 2015-10-28), 10-Q (filing date: 2015-07-27), 10-Q (filing date: 2015-04-27).

The primary reason for the increase in return on assets ratio (ROA) over Q4 2019 is the increase in profitability measured by net profit margin ratio.