.DuPont Analysis: Decomposition of ROE Quarterly Data
Difficulty: Beginner
Decomposing ROE involves expressing net income divided by shareholders' equity as the product of component ratios.
Two-Component Disaggregation of ROE
CVS Health Corp., decomposition of ROE (quarterly data)
| | | | |||
| ROE | = | ROA | × | Leverage | |
|---|---|---|---|---|---|
| Mar 31, 2018 | % | % | |||
| Dec 31, 2017 | % | % | |||
| Sep 30, 2017 | % | % | |||
| Jun 30, 2017 | % | % | |||
| Mar 31, 2017 | % | % | |||
| Dec 31, 2016 | % | % | |||
| Sep 30, 2016 | % | % | |||
| Jun 30, 2016 | % | % | |||
| Mar 31, 2016 | % | % | |||
| Dec 31, 2015 | % | % | |||
| Sep 30, 2015 | % | % | |||
| Jun 30, 2015 | % | % | |||
| Mar 31, 2015 | % | % | |||
| Dec 31, 2014 | % | % | |||
| Sep 30, 2014 | % | % | |||
| Jun 30, 2014 | % | % | |||
| Mar 31, 2014 | % | % | |||
| Dec 31, 2013 | % | % | |||
| Sep 30, 2013 | % | % | |||
| Jun 30, 2013 | % | % | |||
| Mar 31, 2013 | % | % |
Source: Based on data from CVS Health Corp. Quarterly and Annual Reports
The primary reason for the decrease in Return on Equity (ROE) over Q1 2018 is the decrease in profitability measured by Return on Assets (ROA).
Three-Component Disaggregation of ROE
CVS Health Corp., decomposition of ROE (quarterly data)
| | | | | ||||
| ROE | = | Net Profit Margin | × | Asset Turnover | × | Leverage | |
|---|---|---|---|---|---|---|---|
| Mar 31, 2018 | % | % | |||||
| Dec 31, 2017 | % | % | |||||
| Sep 30, 2017 | % | % | |||||
| Jun 30, 2017 | % | % | |||||
| Mar 31, 2017 | % | % | |||||
| Dec 31, 2016 | % | % | |||||
| Sep 30, 2016 | % | % | |||||
| Jun 30, 2016 | % | % | |||||
| Mar 31, 2016 | % | % | |||||
| Dec 31, 2015 | % | % | |||||
| Sep 30, 2015 | % | % | |||||
| Jun 30, 2015 | % | % | |||||
| Mar 31, 2015 | % | % | |||||
| Dec 31, 2014 | % | % | |||||
| Sep 30, 2014 | % | % | |||||
| Jun 30, 2014 | % | % | |||||
| Mar 31, 2014 | % | % | |||||
| Dec 31, 2013 | % | % | |||||
| Sep 30, 2013 | % | % | |||||
| Jun 30, 2013 | % | % | |||||
| Mar 31, 2013 | % | % |
Source: Based on data from CVS Health Corp. Quarterly and Annual Reports
The primary reason for the decrease in Return on Equity (ROE) over Q1 2018 is the decrease in efficiency measured by Asset Turnover.
Two-Way Decomposition of ROA
CVS Health Corp., decomposition of ROA (quarterly data)
| | | | |||
| ROA | = | Net Profit Margin | × | Asset Turnover | |
|---|---|---|---|---|---|
| Mar 31, 2018 | % | % | |||
| Dec 31, 2017 | % | % | |||
| Sep 30, 2017 | % | % | |||
| Jun 30, 2017 | % | % | |||
| Mar 31, 2017 | % | % | |||
| Dec 31, 2016 | % | % | |||
| Sep 30, 2016 | % | % | |||
| Jun 30, 2016 | % | % | |||
| Mar 31, 2016 | % | % | |||
| Dec 31, 2015 | % | % | |||
| Sep 30, 2015 | % | % | |||
| Jun 30, 2015 | % | % | |||
| Mar 31, 2015 | % | % | |||
| Dec 31, 2014 | % | % | |||
| Sep 30, 2014 | % | % | |||
| Jun 30, 2014 | % | % | |||
| Mar 31, 2014 | % | % | |||
| Dec 31, 2013 | % | % | |||
| Sep 30, 2013 | % | % | |||
| Jun 30, 2013 | % | % | |||
| Mar 31, 2013 | % | % |
Source: Based on data from CVS Health Corp. Quarterly and Annual Reports
The primary reason for the decrease in Return on Assets (ROA) over Q1 2018 is the decrease in Asset Turnover.
