Stock Analysis on Net

Devon Energy Corp. (NYSE:DVN)

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

Microsoft Excel LibreOffice Calc

Two-Component Disaggregation of ROE

Devon Energy Corp., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = ROA × Financial Leverage
Dec 31, 2021 30.37% = 13.38% × 2.27
Dec 31, 2020 -92.89% = -27.04% × 3.44
Dec 31, 2019 -6.12% = -2.59% × 2.36
Dec 31, 2018 33.36% = 15.66% × 2.13
Dec 31, 2017 9.70% = 2.97% × 3.27

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).


Three-Component Disaggregation of ROE

Devon Energy Corp., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2021 30.37% = 23.05% × 0.58 × 2.27
Dec 31, 2020 -92.89% = -55.51% × 0.49 × 3.44
Dec 31, 2019 -6.12% = -5.71% × 0.45 × 2.36
Dec 31, 2018 33.36% = 28.54% × 0.55 × 2.13
Dec 31, 2017 9.70% = 6.44% × 0.46 × 3.27

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).


Five-Component Disaggregation of ROE

Devon Energy Corp., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 31, 2021 30.37% = 0.98 × 0.88 × 26.76% × 0.58 × 2.27
Dec 31, 2020 -92.89% = × × -61.47% × 0.49 × 3.44
Dec 31, 2019 -6.12% = × × -2.01% × 0.45 × 2.36
Dec 31, 2018 33.36% = 0.95 × 0.92 × 32.77% × 0.55 × 2.13
Dec 31, 2017 9.70% = 1.25 × 0.58 × 8.82% × 0.46 × 3.27

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).


Two-Component Disaggregation of ROA

Devon Energy Corp., decomposition of ROA

Microsoft Excel LibreOffice Calc
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2021 13.38% = 23.05% × 0.58
Dec 31, 2020 -27.04% = -55.51% × 0.49
Dec 31, 2019 -2.59% = -5.71% × 0.45
Dec 31, 2018 15.66% = 28.54% × 0.55
Dec 31, 2017 2.97% = 6.44% × 0.46

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).


Four-Component Disaggregation of ROA

Devon Energy Corp., decomposition of ROA

Microsoft Excel LibreOffice Calc
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2021 13.38% = 0.98 × 0.88 × 26.76% × 0.58
Dec 31, 2020 -27.04% = × × -61.47% × 0.49
Dec 31, 2019 -2.59% = × × -2.01% × 0.45
Dec 31, 2018 15.66% = 0.95 × 0.92 × 32.77% × 0.55
Dec 31, 2017 2.97% = 1.25 × 0.58 × 8.82% × 0.46

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).


Disaggregation of Net Profit Margin

Devon Energy Corp., decomposition of net profit margin ratio

Microsoft Excel LibreOffice Calc
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2021 23.05% = 0.98 × 0.88 × 26.76%
Dec 31, 2020 -55.51% = × × -61.47%
Dec 31, 2019 -5.71% = × × -2.01%
Dec 31, 2018 28.54% = 0.95 × 0.92 × 32.77%
Dec 31, 2017 6.44% = 1.25 × 0.58 × 8.82%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).