DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data
Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.
Two-Component Disaggregation of ROE
Chipotle Mexican Grill Inc., decomposition of ROE (quarterly data)
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 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).
The financial indicators demonstrate notable trends in profitability and financial structure over the series of quarters presented.
- Return on Assets (ROA)
- Starting in the first quarter of 2021, ROA shows a firm upward trend from 5.95% to 17.26% by the first quarter of 2025. This progression reflects a continual improvement in the company’s ability to generate profits from its assets, with a particularly steady increase post-2022, indicating enhanced operational efficiency or asset utilization.
- Financial Leverage
- The financial leverage ratio generally declines over the observed periods, moving from approximately 3.11 in early 2020 to about 2.59 by the first quarter of 2025. The decrease suggests a reduction in reliance on debt financing relative to equity, potentially pointing towards a more conservative capital structure or improved equity base. Minor fluctuations occur but do not diminish the overall downward trajectory.
- Return on Equity (ROE)
- ROE displays a strong growth trend from 17.61% in early 2021 up to 44.73% in the first quarter of 2025. This significant increase illustrates a rising efficiency in generating shareholder returns. The correlation between declining leverage and rising ROE indicates the company may be improving profitability without increasing financial risk.
Overall, the data presents a picture of improving profitability metrics alongside a slight reduction in financial leverage. The upward trends in both ROA and ROE highlight enhanced operational performance and effective use of capital, suggesting strengthening financial health across the periods analyzed.
Three-Component Disaggregation of ROE
Chipotle Mexican Grill Inc., decomposition of ROE (quarterly data)
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 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 exhibits a clear upward trajectory starting from 5.94% in March 2021 and progressively increasing each quarter to reach 13.59% by March 2025. This sustained growth indicates improving profitability and operational efficiency over the observed periods.
- Asset Turnover
- Asset turnover shows a generally positive trend with a slight rise from 1.00 in March 2021 to a peak of 1.27 in December 2024 and March 2025. Despite minor fluctuations, the ratio remains relatively stable above 1.2 in the latest periods, suggesting effective utilization of assets to generate revenue.
- Financial Leverage
- Financial leverage declines steadily from 3.11 in March 2020 to a low of 2.40 in June 2024, indicating a reduction in reliance on debt or liabilities relative to equity. A slight increase follows towards the end of the period, finishing at 2.59 in March 2025, which may suggest a moderate re-leveraging or strategic capital structure adjustments.
- Return on Equity (ROE)
- ROE presents a notable increase beginning at 17.61% in March 2021, peaking at 44.73% by March 2025. The growth shows periods of acceleration, reflecting enhanced profitability coupled with efficient use of equity capital. The pattern aligns with the improvements in net profit margin and stable asset turnover, despite the declining financial leverage.
Two-Component Disaggregation of ROA
Chipotle Mexican Grill Inc., decomposition of ROA (quarterly data)
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 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 data begins from March 31, 2021, showing a clear upward trend across successive quarters. Initially, the margin is at 5.94% and steadily increases to reach 13.59% by March 31, 2025. This represents more than a doubling in profitability relative to revenue. The growth is consistent, with no quarters exhibiting a decline, which indicates improving cost management or pricing power over time.
- Asset Turnover
- The asset turnover ratio starts at 1.00 in March 31, 2021, and generally trends upwards with some minor fluctuations. It peaks at 1.27 multiple times between December 31, 2022, and March 31, 2025. While there are slight dips around mid-2023 and mid-2024, the overall direction is positive, reflecting increasing efficiency in the use of assets to generate revenue. The improvements suggest better operational utilization or asset base optimization.
- Return on Assets (ROA)
- The ROA shows a significant and consistent increase from 5.95% in March 31, 2021, rising steadily to 17.26% by March 31, 2025. This upward trajectory reflects combined benefits from rising profitability and enhanced asset turnover. The ROA approximately triples during this period, signaling strong financial performance and effective management of company resources that lead to increased return generation on total assets.