Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.
Paying users area
Try for free
Microsoft Corp. pages available for free this week:
- Statement of Comprehensive Income
- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Geographic Areas
- Enterprise Value (EV)
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Selected Financial Data since 2005
- Return on Assets (ROA) since 2005
- Analysis of Revenues
The data is hidden behind: . Unhide it.
Get 1-month access to Microsoft Corp. for $24.99, or
get full access to the entire website for at least 3 months from $62.19.
This is a one-time payment. There is no automatic renewal.
We accept:
Two-Component Disaggregation of ROE
ROE | = | ROA | × | Financial Leverage | |
---|---|---|---|---|---|
Jun 30, 2023 | = | × | |||
Jun 30, 2022 | = | × | |||
Jun 30, 2021 | = | × | |||
Jun 30, 2020 | = | × | |||
Jun 30, 2019 | = | × | |||
Jun 30, 2018 | = | × |
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).
The primary reason for the decrease in return on equity ratio (ROE) over 2023 year is the decrease in profitability measured by return on assets ratio (ROA).
Three-Component Disaggregation of ROE
ROE | = | Net Profit Margin | × | Asset Turnover | × | Financial Leverage | |
---|---|---|---|---|---|---|---|
Jun 30, 2023 | = | × | × | ||||
Jun 30, 2022 | = | × | × | ||||
Jun 30, 2021 | = | × | × | ||||
Jun 30, 2020 | = | × | × | ||||
Jun 30, 2019 | = | × | × | ||||
Jun 30, 2018 | = | × | × |
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).
The primary reason for the decrease in return on equity ratio (ROE) over 2023 year is the decrease in financial leverage ratio.
Five-Component Disaggregation of ROE
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).
The primary reason for the decrease in return on equity ratio (ROE) over 2023 year is the decrease in financial leverage ratio.
Two-Component Disaggregation of ROA
ROA | = | Net Profit Margin | × | Asset Turnover | |
---|---|---|---|---|---|
Jun 30, 2023 | = | × | |||
Jun 30, 2022 | = | × | |||
Jun 30, 2021 | = | × | |||
Jun 30, 2020 | = | × | |||
Jun 30, 2019 | = | × | |||
Jun 30, 2018 | = | × |
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).
The primary reason for the decrease in return on assets ratio (ROA) over 2023 year is the decrease in profitability measured by net profit margin ratio.
Four-Component Disaggregation of ROA
ROA | = | Tax Burden | × | Interest Burden | × | EBIT Margin | × | Asset Turnover | |
---|---|---|---|---|---|---|---|---|---|
Jun 30, 2023 | = | × | × | × | |||||
Jun 30, 2022 | = | × | × | × | |||||
Jun 30, 2021 | = | × | × | × | |||||
Jun 30, 2020 | = | × | × | × | |||||
Jun 30, 2019 | = | × | × | × | |||||
Jun 30, 2018 | = | × | × | × |
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).
The primary reason for the decrease in return on assets ratio (ROA) over 2023 year is the decrease in effect of taxes measured by tax burden ratio.
Disaggregation of Net Profit Margin
Net Profit Margin | = | Tax Burden | × | Interest Burden | × | EBIT Margin | |
---|---|---|---|---|---|---|---|
Jun 30, 2023 | = | × | × | ||||
Jun 30, 2022 | = | × | × | ||||
Jun 30, 2021 | = | × | × | ||||
Jun 30, 2020 | = | × | × | ||||
Jun 30, 2019 | = | × | × | ||||
Jun 30, 2018 | = | × | × |
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).
The primary reason for the decrease in net profit margin ratio over 2023 year is the decrease in effect of taxes measured by tax burden ratio.