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

Intuitive Surgical Inc. (NASDAQ:ISRG)

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

Intuitive Surgical Inc., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = ROA × Financial Leverage
Sep 30, 2020 11.38% = 9.92% × 1.15
Jun 30, 2020 13.00% = 11.24% × 1.16
Mar 31, 2020 16.30% = 14.02% × 1.16
Dec 31, 2019 16.69% = 14.17% × 1.18
Sep 30, 2019 16.93% = 14.39% × 1.18
Jun 30, 2019 16.65% = 14.18% × 1.17
Mar 31, 2019 16.33% = 13.93% × 1.17
Dec 31, 2018 16.89% = 14.37% × 1.17
Sep 30, 2018 12.68% = 10.88% × 1.17
Jun 30, 2018 13.68% = 11.70% × 1.17
Mar 31, 2018 13.97% = 11.95% × 1.17
Dec 31, 2017 13.97% = 11.46% × 1.22
Sep 30, 2017 18.21% = 15.99% × 1.14
Jun 30, 2017 18.05% = 15.55% × 1.16
Mar 31, 2017 18.88% = 16.21% × 1.16
Dec 31, 2016 12.74% = 11.34% × 1.12
Sep 30, 2016 13.03% = 11.69% × 1.11
Jun 30, 2016 13.09% = 11.73% × 1.12
Mar 31, 2016 13.22% = 11.84% × 1.12
Dec 31, 2015 13.63% = 12.00% × 1.14
Sep 30, 2015 — = — × 1.14
Jun 30, 2015 — = — × 1.15
Mar 31, 2015 — = — × 1.15

Based on: 10-Q (filing date: 2020-10-19), 10-Q (filing date: 2020-07-23), 10-Q (filing date: 2020-04-17), 10-K (filing date: 2020-02-07), 10-Q (filing date: 2019-10-18), 10-Q (filing date: 2019-07-22), 10-Q (filing date: 2019-04-19), 10-K (filing date: 2019-02-04), 10-Q (filing date: 2018-10-22), 10-Q (filing date: 2018-07-20), 10-Q (filing date: 2018-04-18), 10-K (filing date: 2018-02-02), 10-Q (filing date: 2017-10-20), 10-Q (filing date: 2017-07-21), 10-Q (filing date: 2017-04-19), 10-K (filing date: 2017-02-06), 10-Q (filing date: 2016-10-19), 10-Q (filing date: 2016-07-20), 10-Q (filing date: 2016-04-19), 10-K (filing date: 2016-02-02), 10-Q (filing date: 2015-10-21), 10-Q (filing date: 2015-07-22), 10-Q (filing date: 2015-04-22).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2020 is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Intuitive Surgical Inc., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Sep 30, 2020 11.38% = 24.45% × 0.41 × 1.15
Jun 30, 2020 13.00% = 26.07% × 0.43 × 1.16
Mar 31, 2020 16.30% = 30.11% × 0.47 × 1.16
Dec 31, 2019 16.69% = 30.80% × 0.46 × 1.18
Sep 30, 2019 16.93% = 30.94% × 0.47 × 1.18
Jun 30, 2019 16.65% = 29.95% × 0.47 × 1.17
Mar 31, 2019 16.33% = 29.78% × 0.47 × 1.17
Dec 31, 2018 16.89% = 30.29% × 0.47 × 1.17
Sep 30, 2018 12.68% = 22.31% × 0.49 × 1.17
Jun 30, 2018 13.68% = 23.20% × 0.50 × 1.17
Mar 31, 2018 13.97% = 23.25% × 0.51 × 1.17
Dec 31, 2017 13.97% = 21.09% × 0.54 × 1.22
Sep 30, 2017 18.21% = 30.16% × 0.53 × 1.14
Jun 30, 2017 18.05% = 28.44% × 0.55 × 1.16
Mar 31, 2017 18.88% = 27.99% × 0.58 × 1.16
Dec 31, 2016 12.74% = 27.21% × 0.42 × 1.12
Sep 30, 2016 13.03% = 27.51% × 0.42 × 1.11
Jun 30, 2016 13.09% = 26.80% × 0.44 × 1.12
Mar 31, 2016 13.22% = 25.67% × 0.46 × 1.12
Dec 31, 2015 13.63% = 24.69% × 0.49 × 1.14
Sep 30, 2015 — = — × — × 1.14
Jun 30, 2015 — = — × — × 1.15
Mar 31, 2015 — = — × — × 1.15

Based on: 10-Q (filing date: 2020-10-19), 10-Q (filing date: 2020-07-23), 10-Q (filing date: 2020-04-17), 10-K (filing date: 2020-02-07), 10-Q (filing date: 2019-10-18), 10-Q (filing date: 2019-07-22), 10-Q (filing date: 2019-04-19), 10-K (filing date: 2019-02-04), 10-Q (filing date: 2018-10-22), 10-Q (filing date: 2018-07-20), 10-Q (filing date: 2018-04-18), 10-K (filing date: 2018-02-02), 10-Q (filing date: 2017-10-20), 10-Q (filing date: 2017-07-21), 10-Q (filing date: 2017-04-19), 10-K (filing date: 2017-02-06), 10-Q (filing date: 2016-10-19), 10-Q (filing date: 2016-07-20), 10-Q (filing date: 2016-04-19), 10-K (filing date: 2016-02-02), 10-Q (filing date: 2015-10-21), 10-Q (filing date: 2015-07-22), 10-Q (filing date: 2015-04-22).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2020 is the decrease in profitability measured by net profit margin ratio.

Two-Component Disaggregation of ROA

Intuitive Surgical Inc., decomposition of ROA (quarterly data)

Microsoft Excel LibreOffice Calc
ROA = Net Profit Margin × Asset Turnover
Sep 30, 2020 9.92% = 24.45% × 0.41
Jun 30, 2020 11.24% = 26.07% × 0.43
Mar 31, 2020 14.02% = 30.11% × 0.47
Dec 31, 2019 14.17% = 30.80% × 0.46
Sep 30, 2019 14.39% = 30.94% × 0.47
Jun 30, 2019 14.18% = 29.95% × 0.47
Mar 31, 2019 13.93% = 29.78% × 0.47
Dec 31, 2018 14.37% = 30.29% × 0.47
Sep 30, 2018 10.88% = 22.31% × 0.49
Jun 30, 2018 11.70% = 23.20% × 0.50
Mar 31, 2018 11.95% = 23.25% × 0.51
Dec 31, 2017 11.46% = 21.09% × 0.54
Sep 30, 2017 15.99% = 30.16% × 0.53
Jun 30, 2017 15.55% = 28.44% × 0.55
Mar 31, 2017 16.21% = 27.99% × 0.58
Dec 31, 2016 11.34% = 27.21% × 0.42
Sep 30, 2016 11.69% = 27.51% × 0.42
Jun 30, 2016 11.73% = 26.80% × 0.44
Mar 31, 2016 11.84% = 25.67% × 0.46
Dec 31, 2015 12.00% = 24.69% × 0.49
Sep 30, 2015 — = — × —
Jun 30, 2015 — = — × —
Mar 31, 2015 — = — × —

Based on: 10-Q (filing date: 2020-10-19), 10-Q (filing date: 2020-07-23), 10-Q (filing date: 2020-04-17), 10-K (filing date: 2020-02-07), 10-Q (filing date: 2019-10-18), 10-Q (filing date: 2019-07-22), 10-Q (filing date: 2019-04-19), 10-K (filing date: 2019-02-04), 10-Q (filing date: 2018-10-22), 10-Q (filing date: 2018-07-20), 10-Q (filing date: 2018-04-18), 10-K (filing date: 2018-02-02), 10-Q (filing date: 2017-10-20), 10-Q (filing date: 2017-07-21), 10-Q (filing date: 2017-04-19), 10-K (filing date: 2017-02-06), 10-Q (filing date: 2016-10-19), 10-Q (filing date: 2016-07-20), 10-Q (filing date: 2016-04-19), 10-K (filing date: 2016-02-02), 10-Q (filing date: 2015-10-21), 10-Q (filing date: 2015-07-22), 10-Q (filing date: 2015-04-22).

The primary reason for the decrease in return on assets ratio (ROA) over Q3 2020 is the decrease in profitability measured by net profit margin ratio.