Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.
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Two-Component Disaggregation of ROE
Based on: 10-Q (reporting date: 2025-06-27), 10-Q (reporting date: 2025-03-28), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-27), 10-Q (reporting date: 2024-06-28), 10-Q (reporting date: 2024-03-29), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-29), 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: 2022-07-01), 10-Q (reporting date: 2022-04-01), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-01), 10-Q (reporting date: 2021-07-02), 10-Q (reporting date: 2021-04-02), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-10-02), 10-Q (reporting date: 2020-07-03), 10-Q (reporting date: 2020-04-03).
- Return on Assets (ROA)
- The Return on Assets exhibits a rising trend from April 2021 to December 2022, increasing from 4.79% to a peak of 8.55%. This upward movement signifies improving efficiency in utilizing assets to generate earnings over this period. However, starting in early 2023, a decline in ROA is observed, dropping steadily to 4.18% by June 2025. This pattern indicates a reduction in asset profitability in the most recent quarters.
- Financial Leverage
- The financial leverage ratio shows a consistent decreasing trend over the entire timeline, beginning at 2.22 in April 2020 and steadily declining to 1.56 by June 2025. This decline suggests a reduction in reliance on debt financing relative to equity, reflecting a more conservative capital structure and potentially reduced financial risk.
- Return on Equity (ROE)
- The Return on Equity follows a similar trajectory to ROA, with initial growth from 9.17% in April 2021 to a peak of 14.4% in December 2022. This increase implies a period of enhanced profitability from shareholders’ equity. Subsequently, ROE demonstrates a downward trend starting in 2023, declining to 6.52% by June 2025, signaling decreased overall equity returns in recent periods.
- Summary of Trends
- Overall, the data reveals a phase of improving profitability and asset utilization leading up to late 2022, followed by a notable contraction in these metrics through mid-2025. Simultaneously, financial leverage steadily decreases throughout the timeframe, indicating a strategic movement towards less debt dependence. The convergence of these patterns suggests an evolution from a growth-oriented financial performance to a more cautious financial posture, accompanied by declining returns on both assets and equity in recent quarters.
Three-Component Disaggregation of ROE
Based on: 10-Q (reporting date: 2025-06-27), 10-Q (reporting date: 2025-03-28), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-27), 10-Q (reporting date: 2024-06-28), 10-Q (reporting date: 2024-03-29), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-29), 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: 2022-07-01), 10-Q (reporting date: 2022-04-01), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-01), 10-Q (reporting date: 2021-07-02), 10-Q (reporting date: 2021-04-02), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-10-02), 10-Q (reporting date: 2020-07-03), 10-Q (reporting date: 2020-04-03).
The analysis of the quarterly financial ratios over the observed periods reveals several notable trends and changes.
- Net Profit Margin
- The net profit margin showed a steady increase from 16.36% in early 2021, peaking around the first quarter of 2023 at approximately 23.32%. After reaching this peak, the margin exhibited a declining trend, falling to 14.21% by the second quarter of 2025. This pattern indicates initial improvement in profitability followed by a gradual reduction over the latter periods.
- Asset Turnover
- Asset turnover started at a value of 0.29 in early 2021 and increased progressively to a high of approximately 0.39 in the last quarter of 2022. Subsequently, it declined and stabilized around the 0.29 to 0.31 range in 2024 and 2025. This suggests improved efficiency in asset utilization up to late 2022, after which efficiency plateaued and slightly decreased.
- Financial Leverage
- Financial leverage demonstrated a consistent downward trend from 2.22 at the start of the period in early 2020 to 1.56 by mid-2025. The reduction indicates a gradual decrease in the use of debt relative to equity, implying a more conservative capital structure over time with a lower reliance on borrowed funds.
- Return on Equity (ROE)
- ROE experienced growth beginning at 9.17% in 2021 and reaching a maximum of approximately 14.4% towards the end of 2022. Following this peak, ROE declined significantly to 6.52% by mid-2025. The drop in ROE aligns with the reduction in net profit margin and changes in asset turnover, reflecting diminishing profitability and efficiency in generating returns for shareholders.
Overall, the company exhibited improving profitability and efficiency metrics up until late 2022 to early 2023, accompanied by a reduction in financial leverage. However, from 2023 onwards, there is a clear reversal with declining profitability, slight reductions in asset turnover efficiency, and a continued conservative approach to financial leverage. These shifts suggest external or internal factors impacting operational performance and profitability during the latter quarters.
Five-Component Disaggregation of ROE
Based on: 10-Q (reporting date: 2025-06-27), 10-Q (reporting date: 2025-03-28), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-27), 10-Q (reporting date: 2024-06-28), 10-Q (reporting date: 2024-03-29), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-29), 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: 2022-07-01), 10-Q (reporting date: 2022-04-01), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-01), 10-Q (reporting date: 2021-07-02), 10-Q (reporting date: 2021-04-02), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-10-02), 10-Q (reporting date: 2020-07-03), 10-Q (reporting date: 2020-04-03).
- Tax Burden
- The tax burden ratio shows a generally upward trend from 0.81 in early 2021 to a peak of 0.90 by the end of 2023. Subsequently, it stabilizes around 0.84 to 0.86 through mid-2025, indicating a modest reduction in tax impact on earnings in recent periods.
- Interest Burden
- The interest burden ratio remains consistently high and stable over the analyzed periods, fluctuating narrowly between 0.93 and 0.98. This suggests that interest expenses have a relatively constant and low impact on earnings before taxes.
- EBIT Margin
- EBIT margin exhibits growth from about 21.4% in late 2020, peaking near 27.4% between late 2022 and mid-2023. After this peak, there is a steady decline through 2024 and into mid-2025, reaching approximately 18.2%. This pattern points to a period of improving operational profitability followed by weakening margin performance.
- Asset Turnover
- Asset turnover improves from approximately 0.29 in late 2020 to a high of 0.39 near the end of 2021, indicating enhanced efficiency in utilizing assets to generate sales. However, after this peak, the ratio gradually declines, settling around 0.29–0.31 in 2024 and mid-2025, reflecting a reduction in asset utilization effectiveness over time.
- Financial Leverage
- Financial leverage shows a declining trend over the entire period, starting near 2.22 and decreasing steadily to about 1.56 by mid-2025. This suggests a consistent deleveraging strategy or a reduction in reliance on debt financing, resulting in lower leverage risk.
- Return on Equity (ROE)
- ROE improves significantly from 9.17% in early 2021, reaching a peak of 14.4% around late 2022 and early 2023. After this peak, there is a marked decrease to around 6.5% by mid-2025, indicating diminishing profitability and efficiency in generating returns on shareholder equity over recent periods.
Two-Component Disaggregation of ROA
Based on: 10-Q (reporting date: 2025-06-27), 10-Q (reporting date: 2025-03-28), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-27), 10-Q (reporting date: 2024-06-28), 10-Q (reporting date: 2024-03-29), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-29), 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: 2022-07-01), 10-Q (reporting date: 2022-04-01), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-01), 10-Q (reporting date: 2021-07-02), 10-Q (reporting date: 2021-04-02), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-10-02), 10-Q (reporting date: 2020-07-03), 10-Q (reporting date: 2020-04-03).
- Net Profit Margin
- The net profit margin demonstrated a consistent upward trajectory from April 2020 through March 2023, advancing from a low point in early 2020 to peak levels around 23.32% in June 2023. Following this peak, the margin showed a steady decline through to June 2025, where it settled near 14.21%. This pattern indicates a period of improving profitability initially, succeeded by a gradual erosion of margin in the most recent quarters.
- Asset Turnover
- Asset turnover exhibited a gradual increase from April 2020 to the end of 2022, rising from approximately 0.29 to a high near 0.39. Beginning in early 2023, this ratio decreased, falling below 0.3 by mid-2024 and maintaining near these levels through mid-2025. This suggests that asset utilization efficiency improved over the initial years but weakened thereafter.
- Return on Assets (ROA)
- Return on assets mirrored the trends observed in net profit margin and asset turnover, increasing steadily from April 2020 and reaching a maximum around 8.55% in March 2023. Thereafter, ROA declined consistently to approximately 4.18% by mid-2025. This decline correlates with the downward trends in both profitability and asset utilization post-2023.
- Overall Insights
- The financial ratios collectively depict a cycle of growth in profitability and operational efficiency spanning from 2020 to early 2023, followed by a contraction phase extending into mid-2025. The concurrent fall in net profit margin, asset turnover, and ROA in the latter period highlights challenges in sustaining profitability and efficient asset use. Such patterns may reflect changing market conditions, operational difficulties, or shifts in strategic focus impacting the company’s financial performance.
Four-Component Disaggregation of ROA
Based on: 10-Q (reporting date: 2025-06-27), 10-Q (reporting date: 2025-03-28), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-27), 10-Q (reporting date: 2024-06-28), 10-Q (reporting date: 2024-03-29), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-29), 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: 2022-07-01), 10-Q (reporting date: 2022-04-01), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-01), 10-Q (reporting date: 2021-07-02), 10-Q (reporting date: 2021-04-02), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-10-02), 10-Q (reporting date: 2020-07-03), 10-Q (reporting date: 2020-04-03).
- Tax Burden
- The tax burden ratio exhibits a generally stable pattern with values predominantly ranging between 0.81 and 0.90 across the periods. Starting from 0.81 in early 2021, it shows a gradual increase, reaching a peak of 0.90 by the end of 2023. After this peak, the ratio slightly declines and stabilizes around 0.84 by mid-2025. This stability suggests consistent effective tax rates over the observed timeframe.
- Interest Burden
- The interest burden ratio demonstrates a modest upward trend initially, moving from 0.94 in early 2021 to nearly 0.98 by the end of 2022, indicating a decreasing impact of interest expenses on earnings before taxes. Following this peak, the ratio slightly declines and levels off around 0.93-0.94 in mid-2025, reflecting a stable and relatively low interest expense burden in recent periods.
- EBIT Margin
- EBIT margin shows an improving trend from 21.41% in early 2021 to a peak of approximately 27.41% around mid-2023. This indicates strengthening operational profitability during this period. However, after mid-2023, the EBIT margin declines progressively to 18.19% by the end of 2025, suggesting operational pressures or increased costs impacting profitability in the latter periods.
- Asset Turnover
- Asset turnover ratio fluctuates modestly, increasing from 0.29 at the start of the data to a high of 0.39 near the end of 2021, indicating improved efficiency in using assets to generate revenue. After this peak, a downward trend ensues, reaching about 0.29 again by mid-2025. These movements reflect variations in asset utilization efficiency over time, with recent periods indicating reduced turnover.
- Return on Assets (ROA)
- ROA improves significantly from 4.79% in early 2021 to 8.55% by late 2022, demonstrating enhanced overall profitability relative to assets. Subsequent to this peak, ROA experiences a steady decline, falling to 4.18% by mid-2025. This decline aligns with trends in EBIT margin and asset turnover, highlighting diminishing returns on asset investments in the latest periods.
Disaggregation of Net Profit Margin
Based on: 10-Q (reporting date: 2025-06-27), 10-Q (reporting date: 2025-03-28), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-27), 10-Q (reporting date: 2024-06-28), 10-Q (reporting date: 2024-03-29), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-29), 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: 2022-07-01), 10-Q (reporting date: 2022-04-01), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-01), 10-Q (reporting date: 2021-07-02), 10-Q (reporting date: 2021-04-02), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-10-02), 10-Q (reporting date: 2020-07-03), 10-Q (reporting date: 2020-04-03).
- Tax Burden
- The tax burden ratio shows an overall increasing trend from 0.81 in early 2021 to a peak of 0.90 in late 2023. After this peak, it slightly declined and stabilized around 0.84 towards mid-2025. This indicates a gradually increasing proportion of earnings being paid as taxes up until 2023, followed by a modest reduction and stabilization.
- Interest Burden
- The interest burden ratio experienced a steady increase from 0.94 in early 2021, reaching a high of 0.98 by late 2022. Subsequently, it demonstrated a gradual decrease, settling around 0.93 by mid-2025. This suggests an initially improving capacity to cover interest expenses with earnings before interest and taxes, followed by a slight weakening over the most recent periods.
- EBIT Margin
- The EBIT margin displayed considerable growth from 21.41% in early 2021 to a maximum of approximately 27.41% in early 2023. After this high point, there was a consistent decline through 2024 and into mid-2025, dropping to approximately 18.19%. This pattern points to strengthening operational profitability up to 2023, followed by a noticeable reduction in earnings before interest and taxes as a percentage of revenue in the more recent quarters.
- Net Profit Margin
- The net profit margin increased notably from 16.36% in early 2021 to a peak of 23.32% in early 2023. Post-peak, the margin declined steadily, falling to 14.21% by mid-2025. This trend reflects improved overall profitability over the first part of the period reviewed, with earnings after all expenses and taxes increasing, followed by a clear erosion of net profitability in the subsequent periods.