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

Boeing Co. (NYSE:BA)

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

Beginner level

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

Two-Component Disaggregation of ROE

Boeing Co., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = ROA × Financial Leverage
Dec 31, 2019 — = -0.48% × —
Dec 31, 2018 3,085.55% = 8.91% × 346.19
Dec 31, 2017 2,309.01% = 8.88% × 260.09
Dec 31, 2016 599.14% = 5.44% × 110.16
Dec 31, 2015 81.70% = 5.48% × 14.90

Based on: 10-K (filing date: 2020-01-31), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-10).

Three-Component Disaggregation of ROE

Boeing Co., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2019 — = -0.83% × 0.57 × —
Dec 31, 2018 3,085.55% = 10.34% × 0.86 × 346.19
Dec 31, 2017 2,309.01% = 8.78% × 1.01 × 260.09
Dec 31, 2016 599.14% = 5.18% × 1.05 × 110.16
Dec 31, 2015 81.70% = 5.39% × 1.02 × 14.90

Based on: 10-K (filing date: 2020-01-31), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-10).

Five-Component Disaggregation of ROE

Boeing Co., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 31, 2019 — = — × — × -2.01% × 0.57 × —
Dec 31, 2018 3,085.55% = 0.90 × 0.96 × 11.94% × 0.86 × 346.19
Dec 31, 2017 2,309.01% = 0.82 × 0.97 × 11.14% × 1.01 × 260.09
Dec 31, 2016 599.14% = 0.88 × 0.95 × 6.21% × 1.05 × 110.16
Dec 31, 2015 81.70% = 0.72 × 0.96 × 7.73% × 1.02 × 14.90

Based on: 10-K (filing date: 2020-01-31), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-10).

Two-Component Disaggregation of ROA

Boeing Co., decomposition of ROA

Microsoft Excel LibreOffice Calc
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2019 -0.48% = -0.83% × 0.57
Dec 31, 2018 8.91% = 10.34% × 0.86
Dec 31, 2017 8.88% = 8.78% × 1.01
Dec 31, 2016 5.44% = 5.18% × 1.05
Dec 31, 2015 5.48% = 5.39% × 1.02

Based on: 10-K (filing date: 2020-01-31), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-10).

The primary reason for the decrease in return on assets ratio (ROA) over 2019 year is the decrease in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

Boeing Co., decomposition of ROA

Microsoft Excel LibreOffice Calc
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2019 -0.48% = — × — × -2.01% × 0.57
Dec 31, 2018 8.91% = 0.90 × 0.96 × 11.94% × 0.86
Dec 31, 2017 8.88% = 0.82 × 0.97 × 11.14% × 1.01
Dec 31, 2016 5.44% = 0.88 × 0.95 × 6.21% × 1.05
Dec 31, 2015 5.48% = 0.72 × 0.96 × 7.73% × 1.02

Based on: 10-K (filing date: 2020-01-31), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-10).

Disaggregation of Net Profit Margin

Boeing Co., decomposition of net profit margin ratio

Microsoft Excel LibreOffice Calc
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2019 -0.83% = — × — × -2.01%
Dec 31, 2018 10.34% = 0.90 × 0.96 × 11.94%
Dec 31, 2017 8.78% = 0.82 × 0.97 × 11.14%
Dec 31, 2016 5.18% = 0.88 × 0.95 × 6.21%
Dec 31, 2015 5.39% = 0.72 × 0.96 × 7.73%

Based on: 10-K (filing date: 2020-01-31), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-10).