Stock Analysis on Net
Stock Analysis on Net

Lumentum Holdings Inc. (NASDAQ:LITE)

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

Microsoft Excel

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

Two-Component Disaggregation of ROE

Lumentum Holdings Inc., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Jun 28, 2025 2.28% = 0.61% × 3.72
Jun 29, 2024 -57.09% = -13.90% × 4.11
Jul 1, 2023 -9.71% = -2.84% × 3.42
Jul 2, 2022 10.61% = 4.78% × 2.22
Jul 3, 2021 20.14% = 11.19% × 1.80
Jun 27, 2020 7.75% = 4.12% × 1.88

Based on: 10-K (reporting date: 2025-06-28), 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27).

Three-Component Disaggregation of ROE

Lumentum Holdings Inc., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Jun 28, 2025 2.28% = 1.57% × 0.39 × 3.72
Jun 29, 2024 -57.09% = -40.21% × 0.35 × 4.11
Jul 1, 2023 -9.71% = -7.45% × 0.38 × 3.42
Jul 2, 2022 10.61% = 11.61% × 0.41 × 2.22
Jul 3, 2021 20.14% = 22.80% × 0.49 × 1.80
Jun 27, 2020 7.75% = 8.07% × 0.51 × 1.88

Based on: 10-K (reporting date: 2025-06-28), 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27).

Five-Component Disaggregation of ROE

Lumentum Holdings Inc., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Jun 28, 2025 2.28% = — × — × -9.11% × 0.39 × 3.72
Jun 29, 2024 -57.09% = — × — × -27.36% × 0.35 × 4.11
Jul 1, 2023 -9.71% = — × — × -3.79% × 0.38 × 3.42
Jul 2, 2022 10.61% = 0.85 × 0.75 × 18.41% × 0.41 × 2.22
Jul 3, 2021 20.14% = 0.86 × 0.87 × 30.40% × 0.49 × 1.80
Jun 27, 2020 7.75% = 0.78 × 0.74 × 14.03% × 0.51 × 1.88

Based on: 10-K (reporting date: 2025-06-28), 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27).

Two-Component Disaggregation of ROA

Lumentum Holdings Inc., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Jun 28, 2025 0.61% = 1.57% × 0.39
Jun 29, 2024 -13.90% = -40.21% × 0.35
Jul 1, 2023 -2.84% = -7.45% × 0.38
Jul 2, 2022 4.78% = 11.61% × 0.41
Jul 3, 2021 11.19% = 22.80% × 0.49
Jun 27, 2020 4.12% = 8.07% × 0.51

Based on: 10-K (reporting date: 2025-06-28), 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27).

Four-Component Disaggregation of ROA

Lumentum Holdings Inc., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Jun 28, 2025 0.61% = — × — × -9.11% × 0.39
Jun 29, 2024 -13.90% = — × — × -27.36% × 0.35
Jul 1, 2023 -2.84% = — × — × -3.79% × 0.38
Jul 2, 2022 4.78% = 0.85 × 0.75 × 18.41% × 0.41
Jul 3, 2021 11.19% = 0.86 × 0.87 × 30.40% × 0.49
Jun 27, 2020 4.12% = 0.78 × 0.74 × 14.03% × 0.51

Based on: 10-K (reporting date: 2025-06-28), 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27).

Disaggregation of Net Profit Margin

Lumentum Holdings Inc., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Jun 28, 2025 1.57% = — × — × -9.11%
Jun 29, 2024 -40.21% = — × — × -27.36%
Jul 1, 2023 -7.45% = — × — × -3.79%
Jul 2, 2022 11.61% = 0.85 × 0.75 × 18.41%
Jul 3, 2021 22.80% = 0.86 × 0.87 × 30.40%
Jun 27, 2020 8.07% = 0.78 × 0.74 × 14.03%

Based on: 10-K (reporting date: 2025-06-28), 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27).