Stock Analysis on Net
Stock Analysis on Net

Moderna Inc. (NASDAQ:MRNA)

This company has been moved to the archive! The financial data has not been updated since November 7, 2024.

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

Microsoft Excel

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

Two-Component Disaggregation of ROE

Moderna Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Sep 30, 2024 -18.65% = -14.07% × 1.32
Jun 30, 2024 -50.09% = -37.42% × 1.34
Mar 31, 2024 -46.56% = -35.67% × 1.31
Dec 31, 2023 -34.03% = -25.58% × 1.33
Sep 30, 2023 -25.76% = -17.82% × 1.45
Jun 30, 2023 7.12% = 5.52% × 1.29
Mar 31, 2023 25.36% = 19.83% × 1.28
Dec 31, 2022 43.73% = 32.34% × 1.35
Sep 30, 2022 65.39% = 45.15% × 1.45
Jun 30, 2022 78.15% = 53.97% × 1.45
Mar 31, 2022 85.73% = 53.02% × 1.62
Dec 31, 2021 86.26% = 49.46% × 1.74
Sep 30, 2021 69.75% = 33.75% × 2.07
Jun 30, 2021 52.13% = 21.64% × 2.41
Mar 31, 2021 15.59% = 4.71% × 3.31
Dec 31, 2020 -29.17% = -10.18% × 2.86
Sep 30, 2020 -21.66% = -12.85% × 1.69
Jun 30, 2020 -16.54% = -13.98% × 1.18
Mar 31, 2020 -30.82% = -24.46% × 1.26

Based on: 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 demonstrated a marked improvement from a negative position in early 2020, starting at -24.46% in March 2020 and progressively moving into positive territory by the first quarter of 2021. The metric peaked notably in the December 2021 quarter at 49.46% and maintained elevated levels through most of 2022, though with a gradual decline from the peak. From early 2023 onwards, ROA exhibited a significant downward trend, falling back into negative values by the third quarter of 2023. This decline continued through mid-2024, although the latest point shows some recovery from the lowest negative value.
Financial Leverage
Financial leverage fluctuated moderately throughout the observed period, beginning at 1.26 in the first quarter of 2020 and exhibiting a peak of 3.31 in March 2021. After this peak, leverage steadily decreased and stabilized roughly between 1.28 and 1.45 from late 2021 through mid-2023. A slight increase was observed again moving into 2024, but overall leverage ratios remained close to historical lower levels when compared to the mid-2020 peak.
Return on Equity (ROE)
Return on equity showed a trajectory similar to ROA but with greater volatility in percentage terms. Starting from a deeply negative figure of -30.82% in March 2020, ROE turned positive by the first quarter of 2021 and experienced a strong rally that peaked at 86.26% in December 2021. Following this peak, the ROE exhibited a declining trend through 2022 and 2023, with sharp drops pushing it back into negative territory in the second half of 2023. The negative trend intensified through the end of the observed period in 2024, although the latest reading showed a partial easing of the negative position.
Overall Insights
Both profitability indicators, ROA and ROE, improved significantly through 2021, reaching their highest levels in late 2021 before commencing a sustained decline from early 2023 onwards. This decline corresponded with a reduction in financial leverage from its peak in early 2021 to a more moderate, stable range through later periods. The data indicates a period of strong profitability potentially associated with elevated leverage in 2021, followed by a return to lower leverage and downturn in profitability measures. The recent negative returns suggest challenges impacting asset efficiency and equity profitability, with some indication of stabilization but no clear return to prior peak performance as of mid-2024.

Three-Component Disaggregation of ROE

Moderna Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Sep 30, 2024 -18.65% = -44.80% × 0.31 × 1.32
Jun 30, 2024 -50.09% = -119.71% × 0.31 × 1.34
Mar 31, 2024 -46.56% = -119.12% × 0.30 × 1.31
Dec 31, 2023 -34.03% = -70.66% × 0.36 × 1.33
Sep 30, 2023 -25.76% = -39.67% × 0.45 × 1.45
Jun 30, 2023 7.12% = 11.95% × 0.46 × 1.29
Mar 31, 2023 25.36% = 33.37% × 0.59 × 1.28
Dec 31, 2022 43.73% = 45.36% × 0.71 × 1.35
Sep 30, 2022 65.39% = 57.36% × 0.79 × 1.45
Jun 30, 2022 78.15% = 63.31% × 0.85 × 1.45
Mar 31, 2022 85.73% = 66.94% × 0.79 × 1.62
Dec 31, 2021 86.26% = 69.04% × 0.72 × 1.74
Sep 30, 2021 69.75% = 64.55% × 0.52 × 2.07
Jun 30, 2021 52.13% = 57.01% × 0.38 × 2.41
Mar 31, 2021 15.59% = 30.95% × 0.15 × 3.31
Dec 31, 2020 -29.17% = -373.77% × 0.03 × 2.86
Sep 30, 2020 -21.66% = — × 0.00 × 1.69
Jun 30, 2020 -16.54% = — × 0.00 × 1.18
Mar 31, 2020 -30.82% = — × 0.00 × 1.26

Based on: 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 experienced significant volatility over the observed periods. Initially, in late 2020, it showed a deeply negative figure around -373.77%, indicating substantial losses. This was followed by a remarkable recovery in 2021, with margins rising sharply to a peak of 69.04% at the end of that year. However, from 2022 onwards, there was a steady decline, with the margin decreasing to 45.36% by the first quarter of 2022 and continuing downward thereafter. By the end of 2023 and into 2024, the margin turned negative again, reaching as low as -119.71% in the third quarter of 2024 before a slight improvement to -44.8% in the latest quarter. This pattern suggests periods of strong profitability followed by recurrent losses and increasing margin pressure in recent quarters.
Asset Turnover
Asset turnover showed an increasing trend from early 2021 through late 2022, rising from 0.03 to a peak of 0.85 at the third quarter of 2022. This indicates improving efficiency in generating revenue from assets during this time. However, after this peak, asset turnover declined steadily through 2023 and into 2024, dropping to around 0.31. This decline signifies reduced efficiency in asset utilization over the latest periods.
Financial Leverage
Financial leverage fluctuated moderately throughout the timeframe. Early values started around 1.26 to 1.69, peaking at 3.31 in the first quarter of 2021, indicating higher reliance on debt or liabilities relative to equity in that period. Following this peak, leverage steadily decreased to values between 1.28 and 1.45 in 2022 and 2023, then showed slight fluctuations but generally remained stable around 1.3 in 2024. This pattern reflects a reduction in leverage after early 2021, stabilizing in later periods.
Return on Equity (ROE)
The return on equity showed significant variability aligned with net profit margin trends. Negative ROE was observed through 2020, with troughs reaching -30.82%. From early 2021, ROE improved markedly to peak at 86.26% by the end of 2021, reflecting strong shareholder returns during that interval. From 2022 onwards, ROE decreased progressively, falling to 43.73% by the first quarter of 2022, then continuing to decline into negative territory from late 2023 onwards. By mid-2024, ROE reached low levels near -50.09%, indicating declining profitability on equity and erosion of shareholder value in the most recent data.

Two-Component Disaggregation of ROA

Moderna Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Sep 30, 2024 -14.07% = -44.80% × 0.31
Jun 30, 2024 -37.42% = -119.71% × 0.31
Mar 31, 2024 -35.67% = -119.12% × 0.30
Dec 31, 2023 -25.58% = -70.66% × 0.36
Sep 30, 2023 -17.82% = -39.67% × 0.45
Jun 30, 2023 5.52% = 11.95% × 0.46
Mar 31, 2023 19.83% = 33.37% × 0.59
Dec 31, 2022 32.34% = 45.36% × 0.71
Sep 30, 2022 45.15% = 57.36% × 0.79
Jun 30, 2022 53.97% = 63.31% × 0.85
Mar 31, 2022 53.02% = 66.94% × 0.79
Dec 31, 2021 49.46% = 69.04% × 0.72
Sep 30, 2021 33.75% = 64.55% × 0.52
Jun 30, 2021 21.64% = 57.01% × 0.38
Mar 31, 2021 4.71% = 30.95% × 0.15
Dec 31, 2020 -10.18% = -373.77% × 0.03
Sep 30, 2020 -12.85% = — × 0.00
Jun 30, 2020 -13.98% = — × 0.00
Mar 31, 2020 -24.46% = — × 0.00

Based on: 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 displayed intense volatility throughout the observed periods. Initially, in early 2020, values were not available, but by the fourth quarter of 2020, a significant negative margin of -373.77% was recorded. This was followed by a strong recovery into positive territory through 2021, reaching a peak of 69.04% in the fourth quarter. However, starting in early 2022, a gradual decline commenced, turning sharply negative again by the end of 2023, reaching lows around -119% in late 2023 and early 2024, with a slight improvement to -44.8% in the first quarter of 2024. This pattern indicates a period of exceptional profitability followed by a severe downturn in profit margins.
Asset Turnover
Asset turnover ratios were initially missing but started to be reported in the first quarter of 2021, showing a generally increasing trend from 0.03 to a peak of 0.85 by the third quarter of 2022. After reaching this peak, a gradual decline ensued, dropping to around 0.31 by the third quarter of 2024. This suggests an initial improvement in asset utilization efficiency, which subsequently deteriorated somewhat, stabilizing at a lower level in the most recent quarters.
Return on Assets (ROA)
Return on assets began with negative values in early 2020, showing gradual improvement into positive territory by the first quarter of 2021. ROA peaked at 53.02% in the first quarter of 2022 before beginning a steady decline, becoming negative again from late 2023 onward. The lowest point reached was approximately -37.42% in the third quarter of 2024, with a slight recovery to -14.07% in the last reported quarter. ROA trends mirrored those of net profit margin, indicating profitability and efficiency fluctuations impacting overall asset returns.