Stock Analysis on Net
Stock Analysis on Net

Edwards Lifesciences Corp. (NYSE:EW)

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

Beginner level

Two-Component Disaggregation of ROE

Edwards Lifesciences Corp., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = ROA × Financial Leverage
Sep 30, 2020 18.86% = 11.68% × 1.62
Jun 30, 2020 19.37% = 11.58% × 1.67
Mar 31, 2020 28.40% = 18.23% × 1.56
Dec 31, 2019 25.24% = 16.14% × 1.56
Sep 30, 2019 20.28% = 12.97% × 1.56
Jun 30, 2019 20.71% = 13.01% × 1.59
Mar 31, 2019 22.20% = 13.99% × 1.59
Dec 31, 2018 23.00% = 13.57% × 1.70
Sep 30, 2018 21.19% = 11.96% × 1.77
Jun 30, 2018 20.75% = 11.55% × 1.80
Mar 31, 2018 17.25% = 9.61% × 1.79
Dec 31, 2017 19.74% = 10.25% × 1.93
Sep 30, 2017 23.55% = 13.57% × 1.74
Jun 30, 2017 24.36% = 13.94% × 1.75
Mar 31, 2017 23.94% = 13.74% × 1.74
Dec 31, 2016 21.74% = 12.63% × 1.72
Sep 30, 2016 20.50% = 12.71% × 1.61
Jun 30, 2016 21.38% = 13.04% × 1.64
Mar 31, 2016 22.38% = 13.35% × 1.68
Dec 31, 2015 19.77% = 12.19% × 1.62
Sep 30, 2015 = × 1.60
Jun 30, 2015 = × 1.58
Mar 31, 2015 = × 1.58

Based on: 10-Q (filing date: 2020-10-26), 10-Q (filing date: 2020-07-27), 10-Q (filing date: 2020-04-28), 10-K (filing date: 2020-02-14), 10-Q (filing date: 2019-10-25), 10-Q (filing date: 2019-07-26), 10-Q (filing date: 2019-04-26), 10-K (filing date: 2019-02-15), 10-Q (filing date: 2018-10-26), 10-Q (filing date: 2018-07-27), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-16), 10-Q (filing date: 2017-10-27), 10-Q (filing date: 2017-07-28), 10-Q (filing date: 2017-04-28), 10-K (filing date: 2017-02-17), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-07-29), 10-Q (filing date: 2016-04-29), 10-K (filing date: 2016-02-19), 10-Q (filing date: 2015-10-29), 10-Q (filing date: 2015-07-29), 10-Q (filing date: 2015-04-29).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2020 is the decrease in financial leverage ratio.


Three-Component Disaggregation of ROE

Edwards Lifesciences Corp., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Sep 30, 2020 18.86% = 18.18% × 0.64 × 1.62
Jun 30, 2020 19.37% = 17.21% × 0.67 × 1.67
Mar 31, 2020 28.40% = 24.71% × 0.74 × 1.56
Dec 31, 2019 25.24% = 24.08% × 0.67 × 1.56
Sep 30, 2019 20.28% = 18.64% × 0.70 × 1.56
Jun 30, 2019 20.71% = 18.29% × 0.71 × 1.59
Mar 31, 2019 22.20% = 20.03% × 0.70 × 1.59
Dec 31, 2018 23.00% = 19.40% × 0.70 × 1.70
Sep 30, 2018 21.19% = 19.61% × 0.61 × 1.77
Jun 30, 2018 20.75% = 18.50% × 0.62 × 1.80
Mar 31, 2018 17.25% = 16.25% × 0.59 × 1.79
Dec 31, 2017 19.74% = 16.99% × 0.60 × 1.93
Sep 30, 2017 23.55% = 22.47% × 0.60 × 1.74
Jun 30, 2017 24.36% = 22.16% × 0.63 × 1.75
Mar 31, 2017 23.94% = 20.85% × 0.66 × 1.74
Dec 31, 2016 21.74% = 19.22% × 0.66 × 1.72
Sep 30, 2016 20.50% = 19.24% × 0.66 × 1.61
Jun 30, 2016 21.38% = 19.26% × 0.68 × 1.64
Mar 31, 2016 22.38% = 19.78% × 0.67 × 1.68
Dec 31, 2015 19.77% = 19.85% × 0.61 × 1.62
Sep 30, 2015 = × × 1.60
Jun 30, 2015 = × × 1.58
Mar 31, 2015 = × × 1.58

Based on: 10-Q (filing date: 2020-10-26), 10-Q (filing date: 2020-07-27), 10-Q (filing date: 2020-04-28), 10-K (filing date: 2020-02-14), 10-Q (filing date: 2019-10-25), 10-Q (filing date: 2019-07-26), 10-Q (filing date: 2019-04-26), 10-K (filing date: 2019-02-15), 10-Q (filing date: 2018-10-26), 10-Q (filing date: 2018-07-27), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-16), 10-Q (filing date: 2017-10-27), 10-Q (filing date: 2017-07-28), 10-Q (filing date: 2017-04-28), 10-K (filing date: 2017-02-17), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-07-29), 10-Q (filing date: 2016-04-29), 10-K (filing date: 2016-02-19), 10-Q (filing date: 2015-10-29), 10-Q (filing date: 2015-07-29), 10-Q (filing date: 2015-04-29).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2020 is the decrease in efficiency measured by asset turnover ratio.


Two-Component Disaggregation of ROA

Edwards Lifesciences Corp., decomposition of ROA (quarterly data)

Microsoft Excel LibreOffice Calc
ROA = Net Profit Margin × Asset Turnover
Sep 30, 2020 11.68% = 18.18% × 0.64
Jun 30, 2020 11.58% = 17.21% × 0.67
Mar 31, 2020 18.23% = 24.71% × 0.74
Dec 31, 2019 16.14% = 24.08% × 0.67
Sep 30, 2019 12.97% = 18.64% × 0.70
Jun 30, 2019 13.01% = 18.29% × 0.71
Mar 31, 2019 13.99% = 20.03% × 0.70
Dec 31, 2018 13.57% = 19.40% × 0.70
Sep 30, 2018 11.96% = 19.61% × 0.61
Jun 30, 2018 11.55% = 18.50% × 0.62
Mar 31, 2018 9.61% = 16.25% × 0.59
Dec 31, 2017 10.25% = 16.99% × 0.60
Sep 30, 2017 13.57% = 22.47% × 0.60
Jun 30, 2017 13.94% = 22.16% × 0.63
Mar 31, 2017 13.74% = 20.85% × 0.66
Dec 31, 2016 12.63% = 19.22% × 0.66
Sep 30, 2016 12.71% = 19.24% × 0.66
Jun 30, 2016 13.04% = 19.26% × 0.68
Mar 31, 2016 13.35% = 19.78% × 0.67
Dec 31, 2015 12.19% = 19.85% × 0.61
Sep 30, 2015 = ×
Jun 30, 2015 = ×
Mar 31, 2015 = ×

Based on: 10-Q (filing date: 2020-10-26), 10-Q (filing date: 2020-07-27), 10-Q (filing date: 2020-04-28), 10-K (filing date: 2020-02-14), 10-Q (filing date: 2019-10-25), 10-Q (filing date: 2019-07-26), 10-Q (filing date: 2019-04-26), 10-K (filing date: 2019-02-15), 10-Q (filing date: 2018-10-26), 10-Q (filing date: 2018-07-27), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-16), 10-Q (filing date: 2017-10-27), 10-Q (filing date: 2017-07-28), 10-Q (filing date: 2017-04-28), 10-K (filing date: 2017-02-17), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-07-29), 10-Q (filing date: 2016-04-29), 10-K (filing date: 2016-02-19), 10-Q (filing date: 2015-10-29), 10-Q (filing date: 2015-07-29), 10-Q (filing date: 2015-04-29).

The primary reason for the increase in return on assets ratio (ROA) over Q3 2020 is the increase in profitability measured by net profit margin ratio.