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

Two-Component Disaggregation of ROE
Three-Component Disaggregation of ROE
Five-Component Disaggregation of ROE
Two-Component Disaggregation of ROA
Four-Component Disaggregation of ROA
Disaggregation of Net Profit Margin

Regeneron Pharmaceuticals Inc., decomposition of ROE (quarterly data)


	ROE	=	ROA	×	Financial Leverage
Sep 30, 2020	31.17%	=	19.62%	×	1.59
Jun 30, 2020	32.94%	=	20.68%	×	1.59
Mar 31, 2020	18.79%	=	14.46%	×	1.30
Dec 31, 2019	19.08%	=	14.29%	×	1.34
Sep 30, 2019	20.41%	=	15.38%	×	1.33
Jun 30, 2019	21.21%	=	15.71%	×	1.35
Mar 31, 2019	25.70%	=	18.88%	×	1.36
Dec 31, 2018	27.91%	=	20.83%	×	1.34
Sep 30, 2018	22.85%	=	16.64%	×	1.37
Jun 30, 2018	22.14%	=	15.99%	×	1.38
Mar 31, 2018	21.74%	=	15.23%	×	1.43
Dec 31, 2017	19.51%	=	13.67%	×	1.43
Sep 30, 2017	21.12%	=	14.69%	×	1.44
Jun 30, 2017	20.91%	=	14.24%	×	1.47
Mar 31, 2017	19.79%	=	12.32%	×	1.61
Dec 31, 2016	20.13%	=	12.84%	×	1.57
Sep 30, 2016	17.75%	=	11.68%	×	1.52
Jun 30, 2016	18.23%	=	11.97%	×	1.52
Mar 31, 2016	19.69%	=	12.56%	×	1.57
Dec 31, 2015	17.40%	=	11.34%	×	1.53
Sep 30, 2015	—	=	—	×	1.57
Jun 30, 2015	—	=	—	×	1.36
Mar 31, 2015	—	=	—	×	1.41

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).

Regeneron Pharmaceuticals Inc., decomposition of ROE (quarterly data)


	ROE	=	Net Profit Margin	×	Asset Turnover	×	Financial Leverage
Sep 30, 2020	31.17%	=	38.28%	×	0.51	×	1.59
Jun 30, 2020	32.94%	=	37.30%	×	0.55	×	1.59
Mar 31, 2020	18.79%	=	28.56%	×	0.51	×	1.30
Dec 31, 2019	19.08%	=	26.91%	×	0.53	×	1.34
Sep 30, 2019	20.41%	=	28.13%	×	0.55	×	1.33
Jun 30, 2019	21.21%	=	28.59%	×	0.55	×	1.35
Mar 31, 2019	25.70%	=	35.12%	×	0.54	×	1.36
Dec 31, 2018	27.91%	=	36.42%	×	0.57	×	1.34
Sep 30, 2018	22.85%	=	28.24%	×	0.59	×	1.37
Jun 30, 2018	22.14%	=	25.65%	×	0.62	×	1.38
Mar 31, 2018	21.74%	=	23.54%	×	0.65	×	1.43
Dec 31, 2017	19.51%	=	20.41%	×	0.67	×	1.43
Sep 30, 2017	21.12%	=	23.17%	×	0.63	×	1.44
Jun 30, 2017	20.91%	=	22.05%	×	0.65	×	1.47
Mar 31, 2017	19.79%	=	19.34%	×	0.64	×	1.61
Dec 31, 2016	20.13%	=	18.42%	×	0.70	×	1.57
Sep 30, 2016	17.75%	=	16.85%	×	0.69	×	1.52
Jun 30, 2016	18.23%	=	15.98%	×	0.75	×	1.52
Mar 31, 2016	19.69%	=	16.72%	×	0.75	×	1.57
Dec 31, 2015	17.40%	=	15.50%	×	0.73	×	1.53
Sep 30, 2015	—	=	—	×	—	×	1.57
Jun 30, 2015	—	=	—	×	—	×	1.36
Mar 31, 2015	—	=	—	×	—	×	1.41

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2020 is the decrease in efficiency measured by asset turnover ratio.

Regeneron Pharmaceuticals Inc., decomposition of ROE (quarterly data)


	ROE	=	Tax Burden	×	Interest Burden	×	EBIT Margin	×	Asset Turnover	×	Financial Leverage
Sep 30, 2020	31.17%	=	0.91	×	0.99	×	42.75%	×	0.51	×	1.59
Jun 30, 2020	32.94%	=	0.92	×	0.99	×	40.96%	×	0.55	×	1.59
Mar 31, 2020	18.79%	=	0.89	×	0.99	×	32.33%	×	0.51	×	1.30
Dec 31, 2019	19.08%	=	0.87	×	0.99	×	31.28%	×	0.53	×	1.34
Sep 30, 2019	20.41%	=	0.97	×	0.99	×	29.47%	×	0.55	×	1.33
Jun 30, 2019	21.21%	=	0.99	×	0.99	×	29.20%	×	0.55	×	1.35
Mar 31, 2019	25.70%	=	0.97	×	0.99	×	36.81%	×	0.54	×	1.36
Dec 31, 2018	27.91%	=	0.96	×	0.99	×	38.47%	×	0.57	×	1.34
Sep 30, 2018	22.85%	=	0.74	×	0.99	×	38.63%	×	0.59	×	1.37
Jun 30, 2018	22.14%	=	0.67	×	0.99	×	38.49%	×	0.62	×	1.38
Mar 31, 2018	21.74%	=	0.64	×	0.99	×	37.19%	×	0.65	×	1.43
Dec 31, 2017	19.51%	=	0.58	×	0.99	×	35.82%	×	0.67	×	1.43
Sep 30, 2017	21.12%	=	0.69	×	0.99	×	34.21%	×	0.63	×	1.44
Jun 30, 2017	20.91%	=	0.69	×	0.99	×	32.12%	×	0.65	×	1.47
Mar 31, 2017	19.79%	=	0.67	×	0.99	×	29.00%	×	0.64	×	1.61
Dec 31, 2016	20.13%	=	0.67	×	0.99	×	27.51%	×	0.70	×	1.57
Sep 30, 2016	17.75%	=	0.66	×	0.99	×	25.85%	×	0.69	×	1.52
Jun 30, 2016	18.23%	=	0.60	×	0.99	×	26.93%	×	0.75	×	1.52
Mar 31, 2016	19.69%	=	0.58	×	0.99	×	29.07%	×	0.75	×	1.57
Dec 31, 2015	17.40%	=	0.52	×	0.99	×	30.20%	×	0.73	×	1.53
Sep 30, 2015	—	=	—	×	—	×	—	×	—	×	1.57
Jun 30, 2015	—	=	—	×	—	×	—	×	—	×	1.36
Mar 31, 2015	—	=	—	×	—	×	—	×	—	×	1.41

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2020 is the decrease in efficiency measured by asset turnover ratio.

Regeneron Pharmaceuticals Inc., decomposition of ROA (quarterly data)


	ROA	=	Net Profit Margin	×	Asset Turnover
Sep 30, 2020	19.62%	=	38.28%	×	0.51
Jun 30, 2020	20.68%	=	37.30%	×	0.55
Mar 31, 2020	14.46%	=	28.56%	×	0.51
Dec 31, 2019	14.29%	=	26.91%	×	0.53
Sep 30, 2019	15.38%	=	28.13%	×	0.55
Jun 30, 2019	15.71%	=	28.59%	×	0.55
Mar 31, 2019	18.88%	=	35.12%	×	0.54
Dec 31, 2018	20.83%	=	36.42%	×	0.57
Sep 30, 2018	16.64%	=	28.24%	×	0.59
Jun 30, 2018	15.99%	=	25.65%	×	0.62
Mar 31, 2018	15.23%	=	23.54%	×	0.65
Dec 31, 2017	13.67%	=	20.41%	×	0.67
Sep 30, 2017	14.69%	=	23.17%	×	0.63
Jun 30, 2017	14.24%	=	22.05%	×	0.65
Mar 31, 2017	12.32%	=	19.34%	×	0.64
Dec 31, 2016	12.84%	=	18.42%	×	0.70
Sep 30, 2016	11.68%	=	16.85%	×	0.69
Jun 30, 2016	11.97%	=	15.98%	×	0.75
Mar 31, 2016	12.56%	=	16.72%	×	0.75
Dec 31, 2015	11.34%	=	15.50%	×	0.73
Sep 30, 2015	—	=	—	×	—
Jun 30, 2015	—	=	—	×	—
Mar 31, 2015	—	=	—	×	—

The primary reason for the decrease in return on assets ratio (ROA) over Q3 2020 is the decrease in asset turnover ratio.

Regeneron Pharmaceuticals Inc., decomposition of ROA (quarterly data)


	ROA	=	Tax Burden	×	Interest Burden	×	EBIT Margin	×	Asset Turnover
Sep 30, 2020	19.62%	=	0.91	×	0.99	×	42.75%	×	0.51
Jun 30, 2020	20.68%	=	0.92	×	0.99	×	40.96%	×	0.55
Mar 31, 2020	14.46%	=	0.89	×	0.99	×	32.33%	×	0.51
Dec 31, 2019	14.29%	=	0.87	×	0.99	×	31.28%	×	0.53
Sep 30, 2019	15.38%	=	0.97	×	0.99	×	29.47%	×	0.55
Jun 30, 2019	15.71%	=	0.99	×	0.99	×	29.20%	×	0.55
Mar 31, 2019	18.88%	=	0.97	×	0.99	×	36.81%	×	0.54
Dec 31, 2018	20.83%	=	0.96	×	0.99	×	38.47%	×	0.57
Sep 30, 2018	16.64%	=	0.74	×	0.99	×	38.63%	×	0.59
Jun 30, 2018	15.99%	=	0.67	×	0.99	×	38.49%	×	0.62
Mar 31, 2018	15.23%	=	0.64	×	0.99	×	37.19%	×	0.65
Dec 31, 2017	13.67%	=	0.58	×	0.99	×	35.82%	×	0.67
Sep 30, 2017	14.69%	=	0.69	×	0.99	×	34.21%	×	0.63
Jun 30, 2017	14.24%	=	0.69	×	0.99	×	32.12%	×	0.65
Mar 31, 2017	12.32%	=	0.67	×	0.99	×	29.00%	×	0.64
Dec 31, 2016	12.84%	=	0.67	×	0.99	×	27.51%	×	0.70
Sep 30, 2016	11.68%	=	0.66	×	0.99	×	25.85%	×	0.69
Jun 30, 2016	11.97%	=	0.60	×	0.99	×	26.93%	×	0.75
Mar 31, 2016	12.56%	=	0.58	×	0.99	×	29.07%	×	0.75
Dec 31, 2015	11.34%	=	0.52	×	0.99	×	30.20%	×	0.73
Sep 30, 2015	—	=	—	×	—	×	—	×	—
Jun 30, 2015	—	=	—	×	—	×	—	×	—
Mar 31, 2015	—	=	—	×	—	×	—	×	—

The primary reason for the decrease in return on assets ratio (ROA) over Q3 2020 is the decrease in efficiency measured by asset turnover ratio.

Regeneron Pharmaceuticals Inc., decomposition of net profit margin ratio (quarterly data)


	Net Profit Margin	=	Tax Burden	×	Interest Burden	×	EBIT Margin
Sep 30, 2020	38.28%	=	0.91	×	0.99	×	42.75%
Jun 30, 2020	37.30%	=	0.92	×	0.99	×	40.96%
Mar 31, 2020	28.56%	=	0.89	×	0.99	×	32.33%
Dec 31, 2019	26.91%	=	0.87	×	0.99	×	31.28%
Sep 30, 2019	28.13%	=	0.97	×	0.99	×	29.47%
Jun 30, 2019	28.59%	=	0.99	×	0.99	×	29.20%
Mar 31, 2019	35.12%	=	0.97	×	0.99	×	36.81%
Dec 31, 2018	36.42%	=	0.96	×	0.99	×	38.47%
Sep 30, 2018	28.24%	=	0.74	×	0.99	×	38.63%
Jun 30, 2018	25.65%	=	0.67	×	0.99	×	38.49%
Mar 31, 2018	23.54%	=	0.64	×	0.99	×	37.19%
Dec 31, 2017	20.41%	=	0.58	×	0.99	×	35.82%
Sep 30, 2017	23.17%	=	0.69	×	0.99	×	34.21%
Jun 30, 2017	22.05%	=	0.69	×	0.99	×	32.12%
Mar 31, 2017	19.34%	=	0.67	×	0.99	×	29.00%
Dec 31, 2016	18.42%	=	0.67	×	0.99	×	27.51%
Sep 30, 2016	16.85%	=	0.66	×	0.99	×	25.85%
Jun 30, 2016	15.98%	=	0.60	×	0.99	×	26.93%
Mar 31, 2016	16.72%	=	0.58	×	0.99	×	29.07%
Dec 31, 2015	15.50%	=	0.52	×	0.99	×	30.20%
Sep 30, 2015	—	=	—	×	—	×	—
Jun 30, 2015	—	=	—	×	—	×	—
Mar 31, 2015	—	=	—	×	—	×	—

The primary reason for the increase in net profit margin ratio over Q3 2020 is the increase in operating profitability measured by EBIT margin ratio.

Regeneron Pharmaceuticals Inc. (NASDAQ:REGN)

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

Two-Component Disaggregation of ROE

Three-Component Disaggregation of ROE

Five-Component Disaggregation of ROE

Two-Component Disaggregation of ROA

Four-Component Disaggregation of ROA

Disaggregation of Net Profit Margin

Regeneron Pharmaceuticals Inc. (NASDAQ:REGN)

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

Two-Component Disaggregation of ROE

Three-Component Disaggregation of ROE

Five-Component Disaggregation of ROE

Two-Component Disaggregation of ROA

Four-Component Disaggregation of ROA

Disaggregation of Net Profit Margin

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