Paying users zone. Data is covered by .

  • Get to Emerson Electric Co. for $13.99, or

  • get to whole website for at least 3 months from $49.99.

 

$13.99

DuPont Analysis: Decomposition of ROE

Difficulty: Beginner


Two-Component Disaggregation of ROE

Emerson Electric Co., decomposition of ROE

 
ROE = ROA × Leverage
Sep 30, 2017 % %
Sep 30, 2016 % %
Sep 30, 2015 % %
Sep 30, 2014 % %
Sep 30, 2013 % %
Sep 30, 2012 % %

Source: Based on data from Emerson Electric Co. Annual Reports

 

The primary reason for the decrease in Return on Equity (ROE) over 2017 year is the decrease in Financial Leverage.

Top


Three-Component Disaggregation of ROE

Emerson Electric Co., decomposition of ROE

 
ROE = Net Profit Margin × Asset Turnover × Leverage
Sep 30, 2017 % %
Sep 30, 2016 % %
Sep 30, 2015 % %
Sep 30, 2014 % %
Sep 30, 2013 % %
Sep 30, 2012 % %

Source: Based on data from Emerson Electric Co. Annual Reports

 

The primary reason for the decrease in Return on Equity (ROE) over 2017 year is the decrease in Financial Leverage.

Top


Five-Component Disaggregation of ROE

Emerson Electric Co., decomposition of ROE

 
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Leverage
Sep 30, 2017 % %
Sep 30, 2016 % %
Sep 30, 2015 % %
Sep 30, 2014 % %
Sep 30, 2013 % %
Sep 30, 2012 % %

Source: Based on data from Emerson Electric Co. Annual Reports

 

The primary reason for the decrease in Return on Equity (ROE) over 2017 year is the decrease in Financial Leverage.

Top


Two-Way Decomposition of ROA

Emerson Electric Co., decomposition of ROA

 
ROA = Net Profit Margin × Asset Turnover
Sep 30, 2017 % %
Sep 30, 2016 % %
Sep 30, 2015 % %
Sep 30, 2014 % %
Sep 30, 2013 % %
Sep 30, 2012 % %

Source: Based on data from Emerson Electric Co. Annual Reports

 

The primary reason for the increase in Return on Assets (ROA) over 2017 year is the increase in Asset Turnover.

Top


Four-Way Decomposition of ROA

Emerson Electric Co., decomposition of ROA

 
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Sep 30, 2017 % %
Sep 30, 2016 % %
Sep 30, 2015 % %
Sep 30, 2014 % %
Sep 30, 2013 % %
Sep 30, 2012 % %

Source: Based on data from Emerson Electric Co. Annual Reports

 

The primary reason for the increase in Return on Assets (ROA) over 2017 year is the increase in efficiency measured by Asset Turnover.

Top


Decomposition of Net Profit Margin

Emerson Electric Co., decomposition of Net Profit Margin

 
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Sep 30, 2017 % %
Sep 30, 2016 % %
Sep 30, 2015 % %
Sep 30, 2014 % %
Sep 30, 2013 % %
Sep 30, 2012 % %

Source: Based on data from Emerson Electric Co. Annual Reports

 

The primary reason for the decrease in Net Profit Margin over 2017 year is the decrease in operating profitability measured by EBIT Margin.

Top