Microsoft Excel LibreOffice Calc

Coca-Cola Co. (KO)

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

Coca-Cola Co., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = ROA × Financial Leverage
Jun 28, 2019 38.69% = 7.82% × 4.95
Mar 29, 2019 38.03% = 7.63% × 4.98
Dec 31, 2018 37.89% = 7.73% × 4.90
Sep 28, 2018 15.40% = 3.24% × 4.76
Jun 29, 2018 12.98% = 2.66% × 4.89
Mar 30, 2018 7.31% = 1.54% × 4.76
Dec 31, 2017 7.31% = 1.42% × 5.15
Sep 29, 2017 20.57% = 5.03% × 4.09
Jun 30, 2017 18.86% = 4.55% × 4.14
Mar 31, 2017 27.22% = 6.83% × 3.99
Dec 31, 2016 28.30% = 7.48% × 3.78
Sep 30, 2016 27.67% = 7.68% × 3.60
Jul 1, 2016 28.60% = 8.10% × 3.53
Apr 1, 2016 29.21% = 7.97% × 3.66
Dec 31, 2015 28.77% = 8.16% × 3.53
Oct 2, 2015 26.43% = 7.40% × 3.57
Jul 3, 2015 26.56% = 8.07% × 3.29
Apr 3, 2015 24.40% = 7.73% × 3.16
Dec 31, 2014 23.41% = 7.71% × 3.04
Sep 26, 2014 — = — × 2.88
Jun 27, 2014 — = — × 2.80
Mar 28, 2014 — = — × 2.80

Based on: 10-Q (filing date: 2019-07-25), 10-Q (filing date: 2019-04-25), 10-K (filing date: 2019-02-21), 10-Q (filing date: 2018-10-30), 10-Q (filing date: 2018-07-26), 10-Q (filing date: 2018-05-01), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-10-26), 10-Q (filing date: 2017-07-27), 10-Q (filing date: 2017-04-27), 10-K (filing date: 2017-02-24), 10-Q (filing date: 2016-10-27), 10-Q (filing date: 2016-07-28), 10-Q (filing date: 2016-04-28), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-10-28), 10-Q (filing date: 2015-07-29), 10-Q (filing date: 2015-04-30), 10-K (filing date: 2015-02-25), 10-Q (filing date: 2014-10-29), 10-Q (filing date: 2014-07-30), 10-Q (filing date: 2014-04-24).

The primary reason for the increase in return on equity ratio (ROE) over Q2 2019 is the increase in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Coca-Cola Co., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Jun 28, 2019 38.69% = 21.11% × 0.37 × 4.95
Mar 29, 2019 38.03% = 20.91% × 0.37 × 4.98
Dec 31, 2018 37.89% = 20.20% × 0.38 × 4.90
Sep 28, 2018 15.40% = 8.70% × 0.37 × 4.76
Jun 29, 2018 12.98% = 7.18% × 0.37 × 4.89
Mar 30, 2018 7.31% = 4.23% × 0.36 × 4.76
Dec 31, 2017 7.31% = 3.52% × 0.40 × 5.15
Sep 29, 2017 20.57% = 12.20% × 0.41 × 4.09
Jun 30, 2017 18.86% = 10.68% × 0.43 × 4.14
Mar 31, 2017 27.22% = 15.30% × 0.45 × 3.99
Dec 31, 2016 28.30% = 15.59% × 0.48 × 3.78
Sep 30, 2016 27.67% = 16.99% × 0.45 × 3.60
Jul 1, 2016 28.60% = 17.61% × 0.46 × 3.53
Apr 1, 2016 29.21% = 16.59% × 0.48 × 3.66
Dec 31, 2015 28.77% = 16.60% × 0.49 × 3.53
Oct 2, 2015 26.43% = 15.24% × 0.49 × 3.57
Jul 3, 2015 26.56% = 16.51% × 0.49 × 3.29
Apr 3, 2015 24.40% = 15.25% × 0.51 × 3.16
Dec 31, 2014 23.41% = 15.43% × 0.50 × 3.04
Sep 26, 2014 — = — × — × 2.88
Jun 27, 2014 — = — × — × 2.80
Mar 28, 2014 — = — × — × 2.80

Based on: 10-Q (filing date: 2019-07-25), 10-Q (filing date: 2019-04-25), 10-K (filing date: 2019-02-21), 10-Q (filing date: 2018-10-30), 10-Q (filing date: 2018-07-26), 10-Q (filing date: 2018-05-01), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-10-26), 10-Q (filing date: 2017-07-27), 10-Q (filing date: 2017-04-27), 10-K (filing date: 2017-02-24), 10-Q (filing date: 2016-10-27), 10-Q (filing date: 2016-07-28), 10-Q (filing date: 2016-04-28), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-10-28), 10-Q (filing date: 2015-07-29), 10-Q (filing date: 2015-04-30), 10-K (filing date: 2015-02-25), 10-Q (filing date: 2014-10-29), 10-Q (filing date: 2014-07-30), 10-Q (filing date: 2014-04-24).

The primary reason for the increase in return on equity ratio (ROE) over Q2 2019 is the increase in efficiency measured by asset turnover ratio.

Five-Component Disaggregation of ROE

Coca-Cola Co., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Jun 28, 2019 38.69% = 0.83 × 0.90 × 28.15% × 0.37 × 4.95
Mar 29, 2019 38.03% = 0.81 × 0.90 × 28.74% × 0.37 × 4.98
Dec 31, 2018 37.89% = 0.80 × 0.90 × 28.18% × 0.38 × 4.90
Sep 28, 2018 15.40% = 0.34 × 0.90 × 28.11% × 0.37 × 4.76
Jun 29, 2018 12.98% = 0.32 × 0.89 × 25.20% × 0.37 × 4.89
Mar 30, 2018 7.31% = 0.20 × 0.89 × 23.75% × 0.36 × 4.76
Dec 31, 2017 7.31% = 0.18 × 0.89 × 21.60% × 0.40 × 5.15
Sep 29, 2017 20.57% = 0.72 × 0.88 × 19.30% × 0.41 × 4.09
Jun 30, 2017 18.86% = 0.68 × 0.88 × 17.81% × 0.43 × 4.14
Mar 31, 2017 27.22% = 0.81 × 0.91 × 20.93% × 0.45 × 3.99
Dec 31, 2016 28.30% = 0.80 × 0.92 × 21.13% × 0.48 × 3.78
Sep 30, 2016 27.67% = 0.79 × 0.94 × 22.99% × 0.45 × 3.60
Jul 1, 2016 28.60% = 0.81 × 0.94 × 23.16% × 0.46 × 3.53
Apr 1, 2016 29.21% = 0.77 × 0.95 × 22.92% × 0.48 × 3.66
Dec 31, 2015 28.77% = 0.77 × 0.92 × 23.58% × 0.49 × 3.53
Oct 2, 2015 26.43% = 0.75 × 0.91 × 22.09% × 0.49 × 3.57
Jul 3, 2015 26.56% = 0.75 × 0.92 × 23.81% × 0.49 × 3.29
Apr 3, 2015 24.40% = 0.78 × 0.92 × 21.41% × 0.51 × 3.16
Dec 31, 2014 23.41% = 0.76 × 0.95 × 21.27% × 0.50 × 3.04
Sep 26, 2014 — = — × — × — × — × 2.88
Jun 27, 2014 — = — × — × — × — × 2.80
Mar 28, 2014 — = — × — × — × — × 2.80

Based on: 10-Q (filing date: 2019-07-25), 10-Q (filing date: 2019-04-25), 10-K (filing date: 2019-02-21), 10-Q (filing date: 2018-10-30), 10-Q (filing date: 2018-07-26), 10-Q (filing date: 2018-05-01), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-10-26), 10-Q (filing date: 2017-07-27), 10-Q (filing date: 2017-04-27), 10-K (filing date: 2017-02-24), 10-Q (filing date: 2016-10-27), 10-Q (filing date: 2016-07-28), 10-Q (filing date: 2016-04-28), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-10-28), 10-Q (filing date: 2015-07-29), 10-Q (filing date: 2015-04-30), 10-K (filing date: 2015-02-25), 10-Q (filing date: 2014-10-29), 10-Q (filing date: 2014-07-30), 10-Q (filing date: 2014-04-24).

The primary reason for the increase in return on equity ratio (ROE) over Q2 2019 is the increase in effect of taxes measured by tax burden ratio.

Two-Component Disaggregation of ROA

Coca-Cola Co., decomposition of ROA (quarterly data)

Microsoft Excel LibreOffice Calc
ROA = Net Profit Margin × Asset Turnover
Jun 28, 2019 7.82% = 21.11% × 0.37
Mar 29, 2019 7.63% = 20.91% × 0.37
Dec 31, 2018 7.73% = 20.20% × 0.38
Sep 28, 2018 3.24% = 8.70% × 0.37
Jun 29, 2018 2.66% = 7.18% × 0.37
Mar 30, 2018 1.54% = 4.23% × 0.36
Dec 31, 2017 1.42% = 3.52% × 0.40
Sep 29, 2017 5.03% = 12.20% × 0.41
Jun 30, 2017 4.55% = 10.68% × 0.43
Mar 31, 2017 6.83% = 15.30% × 0.45
Dec 31, 2016 7.48% = 15.59% × 0.48
Sep 30, 2016 7.68% = 16.99% × 0.45
Jul 1, 2016 8.10% = 17.61% × 0.46
Apr 1, 2016 7.97% = 16.59% × 0.48
Dec 31, 2015 8.16% = 16.60% × 0.49
Oct 2, 2015 7.40% = 15.24% × 0.49
Jul 3, 2015 8.07% = 16.51% × 0.49
Apr 3, 2015 7.73% = 15.25% × 0.51
Dec 31, 2014 7.71% = 15.43% × 0.50
Sep 26, 2014 — = — × —
Jun 27, 2014 — = — × —
Mar 28, 2014 — = — × —

Based on: 10-Q (filing date: 2019-07-25), 10-Q (filing date: 2019-04-25), 10-K (filing date: 2019-02-21), 10-Q (filing date: 2018-10-30), 10-Q (filing date: 2018-07-26), 10-Q (filing date: 2018-05-01), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-10-26), 10-Q (filing date: 2017-07-27), 10-Q (filing date: 2017-04-27), 10-K (filing date: 2017-02-24), 10-Q (filing date: 2016-10-27), 10-Q (filing date: 2016-07-28), 10-Q (filing date: 2016-04-28), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-10-28), 10-Q (filing date: 2015-07-29), 10-Q (filing date: 2015-04-30), 10-K (filing date: 2015-02-25), 10-Q (filing date: 2014-10-29), 10-Q (filing date: 2014-07-30), 10-Q (filing date: 2014-04-24).

The primary reason for the increase in return on assets ratio (ROA) over Q2 2019 is the increase in asset turnover ratio.

Four-Component Disaggregation of ROA

Coca-Cola Co., decomposition of ROA (quarterly data)

Microsoft Excel LibreOffice Calc
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Jun 28, 2019 7.82% = 0.83 × 0.90 × 28.15% × 0.37
Mar 29, 2019 7.63% = 0.81 × 0.90 × 28.74% × 0.37
Dec 31, 2018 7.73% = 0.80 × 0.90 × 28.18% × 0.38
Sep 28, 2018 3.24% = 0.34 × 0.90 × 28.11% × 0.37
Jun 29, 2018 2.66% = 0.32 × 0.89 × 25.20% × 0.37
Mar 30, 2018 1.54% = 0.20 × 0.89 × 23.75% × 0.36
Dec 31, 2017 1.42% = 0.18 × 0.89 × 21.60% × 0.40
Sep 29, 2017 5.03% = 0.72 × 0.88 × 19.30% × 0.41
Jun 30, 2017 4.55% = 0.68 × 0.88 × 17.81% × 0.43
Mar 31, 2017 6.83% = 0.81 × 0.91 × 20.93% × 0.45
Dec 31, 2016 7.48% = 0.80 × 0.92 × 21.13% × 0.48
Sep 30, 2016 7.68% = 0.79 × 0.94 × 22.99% × 0.45
Jul 1, 2016 8.10% = 0.81 × 0.94 × 23.16% × 0.46
Apr 1, 2016 7.97% = 0.77 × 0.95 × 22.92% × 0.48
Dec 31, 2015 8.16% = 0.77 × 0.92 × 23.58% × 0.49
Oct 2, 2015 7.40% = 0.75 × 0.91 × 22.09% × 0.49
Jul 3, 2015 8.07% = 0.75 × 0.92 × 23.81% × 0.49
Apr 3, 2015 7.73% = 0.78 × 0.92 × 21.41% × 0.51
Dec 31, 2014 7.71% = 0.76 × 0.95 × 21.27% × 0.50
Sep 26, 2014 — = — × — × — × —
Jun 27, 2014 — = — × — × — × —
Mar 28, 2014 — = — × — × — × —

Based on: 10-Q (filing date: 2019-07-25), 10-Q (filing date: 2019-04-25), 10-K (filing date: 2019-02-21), 10-Q (filing date: 2018-10-30), 10-Q (filing date: 2018-07-26), 10-Q (filing date: 2018-05-01), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-10-26), 10-Q (filing date: 2017-07-27), 10-Q (filing date: 2017-04-27), 10-K (filing date: 2017-02-24), 10-Q (filing date: 2016-10-27), 10-Q (filing date: 2016-07-28), 10-Q (filing date: 2016-04-28), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-10-28), 10-Q (filing date: 2015-07-29), 10-Q (filing date: 2015-04-30), 10-K (filing date: 2015-02-25), 10-Q (filing date: 2014-10-29), 10-Q (filing date: 2014-07-30), 10-Q (filing date: 2014-04-24).

The primary reason for the increase in return on assets ratio (ROA) over Q2 2019 is the increase in effect of taxes measured by tax burden ratio.

Disaggregation of Net Profit Margin

Coca-Cola Co., decomposition of net profit margin ratio (quarterly data)

Microsoft Excel LibreOffice Calc
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Jun 28, 2019 21.11% = 0.83 × 0.90 × 28.15%
Mar 29, 2019 20.91% = 0.81 × 0.90 × 28.74%
Dec 31, 2018 20.20% = 0.80 × 0.90 × 28.18%
Sep 28, 2018 8.70% = 0.34 × 0.90 × 28.11%
Jun 29, 2018 7.18% = 0.32 × 0.89 × 25.20%
Mar 30, 2018 4.23% = 0.20 × 0.89 × 23.75%
Dec 31, 2017 3.52% = 0.18 × 0.89 × 21.60%
Sep 29, 2017 12.20% = 0.72 × 0.88 × 19.30%
Jun 30, 2017 10.68% = 0.68 × 0.88 × 17.81%
Mar 31, 2017 15.30% = 0.81 × 0.91 × 20.93%
Dec 31, 2016 15.59% = 0.80 × 0.92 × 21.13%
Sep 30, 2016 16.99% = 0.79 × 0.94 × 22.99%
Jul 1, 2016 17.61% = 0.81 × 0.94 × 23.16%
Apr 1, 2016 16.59% = 0.77 × 0.95 × 22.92%
Dec 31, 2015 16.60% = 0.77 × 0.92 × 23.58%
Oct 2, 2015 15.24% = 0.75 × 0.91 × 22.09%
Jul 3, 2015 16.51% = 0.75 × 0.92 × 23.81%
Apr 3, 2015 15.25% = 0.78 × 0.92 × 21.41%
Dec 31, 2014 15.43% = 0.76 × 0.95 × 21.27%
Sep 26, 2014 — = — × — × —
Jun 27, 2014 — = — × — × —
Mar 28, 2014 — = — × — × —

Based on: 10-Q (filing date: 2019-07-25), 10-Q (filing date: 2019-04-25), 10-K (filing date: 2019-02-21), 10-Q (filing date: 2018-10-30), 10-Q (filing date: 2018-07-26), 10-Q (filing date: 2018-05-01), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-10-26), 10-Q (filing date: 2017-07-27), 10-Q (filing date: 2017-04-27), 10-K (filing date: 2017-02-24), 10-Q (filing date: 2016-10-27), 10-Q (filing date: 2016-07-28), 10-Q (filing date: 2016-04-28), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-10-28), 10-Q (filing date: 2015-07-29), 10-Q (filing date: 2015-04-30), 10-K (filing date: 2015-02-25), 10-Q (filing date: 2014-10-29), 10-Q (filing date: 2014-07-30), 10-Q (filing date: 2014-04-24).

The primary reason for the increase in net profit margin ratio over Q2 2019 is the increase in effect of taxes measured by tax burden ratio.