DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data
Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.
Two-Component Disaggregation of ROE
Intuitive Surgical Inc., decomposition of ROE (quarterly data)
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Return on Assets (ROA)
- The return on assets data begins from December 31, 2020, and shows an upward trend initially from 9.5% to a peak of 13.2% in September 2021. Following this peak, there is a gradual decline to approximately 10.05% by December 2022. From early 2023 onward, the ROA reflects a slow but steady recovery, reaching 12.88% by March 31, 2025. Overall, the ROA exhibits moderate volatility with a notable recovery phase in the most recent periods.
- Financial Leverage
- The financial leverage ratio remains relatively stable throughout the entire period, fluctuating narrowly between 1.12 and 1.17. Early data from March 31, 2020, to December 31, 2021, shows consistent ratios close to 1.15. A slight increase occurs in late 2022 and early 2023 up to 1.17, with a small decline afterward, ending near 1.14 by March 2025. This stability indicates consistent capital structure management without significant changes in debt levels relative to equity.
- Return on Equity (ROE)
- Return on equity starts from December 31, 2020, with a value of 10.9% and shows a strong rise to 14.97% by September 2021. Subsequently, there is a decline to about 11.93% by September 2022. After this trough, the ROE increases steadily and reaches a high of 14.47% by March 31, 2025. This progression mirrors the general behavior observed in ROA, reflecting improvements in profitability and efficient use of equity capital in the later periods.
Three-Component Disaggregation of ROE
Intuitive Surgical Inc., decomposition of ROE (quarterly data)
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Net Profit Margin
- The net profit margin exhibits a generally downward trend starting from a peak of 31.43% in the third quarter of 2020, declining steadily through 2022 to reach a low point of 20.4% by the first quarter of 2023. Following this period, the margin shows a recovery trend, increasing consistently to reach 28.41% by the first quarter of 2025. This suggests an initial contraction in profitability followed by an improvement in operational efficiency or cost management over the latter periods.
- Asset Turnover
- Asset turnover demonstrates a moderate upward trajectory from 0.39 in the first quarter of 2020, peaking at 0.49 in the second quarter of 2023. Thereafter, it experiences a slight decrease, stabilizing around 0.44 to 0.45 towards the first quarter of 2025. This pattern indicates an overall enhancement in the company’s ability to generate revenue from its assets, with a minor decline in the most recent quarters.
- Financial Leverage
- Financial leverage remains relatively stable across the reported periods, fluctuating narrowly between 1.12 and 1.17. This stability implies consistent capital structure management, with a low level of variability in the ratio, indicating limited changes in the extent to which debt is used relative to equity.
- Return on Equity (ROE)
- Return on Equity follows a pattern similar to net profit margin, increasing from a baseline near 10.9% in early 2020 to a peak of approximately 14.97% in the third quarter of 2020. Subsequently, it declines and plateaus around 11.7% to 12.1% through early 2023. From mid-2023 onwards, ROE gradually improves again, reaching about 14.47% by the first quarter of 2025. The trend suggests fluctuating profitability and efficiency in generating returns for shareholders, with recent recovery possibly tied to improved operational performance or strategic initiatives.
Two-Component Disaggregation of ROA
Intuitive Surgical Inc., decomposition of ROA (quarterly data)
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Net Profit Margin
- The net profit margin exhibited a positive trend starting from 24.33% in March 2021, reaching a peak of 31.43% in September 2021. Following this peak, a gradual decline was observed, dropping to 20.4% by December 2022. Subsequently, the margin began to recover, increasing steadily to 28.41% by March 2025. This pattern indicates an initial strong profitability, a period of margin compression, and a later phase of recovery and improvement.
- Asset Turnover
- Asset turnover started at 0.39 in March 2021 and showed a generally upward movement, reaching a high of 0.49 by June 2023. After this apex, the ratio exhibited a slight downward adjustment, settling around 0.45 by March 2025. Overall, the asset turnover ratio reflects improved efficiency in asset utilization over the period with some stabilization towards the end.
- Return on Assets (ROA)
- ROA followed a trajectory similar to net profit margin, beginning at 9.5% in March 2021 and rising sharply to 13.2% in September 2021. Thereafter, ROA experienced a moderate decline, bottoming near 10.05% in December 2022. A subsequent recovery phase is noted, culminating at approximately 12.88% by March 2025. This indicates an initial strong return on asset utilization, temporary contraction, and a gradual improvement in asset profitability by the end of the period.