DuPont Analysis: Decomposition of ROE
Quarterly Data

Difficulty: Beginner


Two-Component Disaggregation of ROE

Emerson Electric Co., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = ROA × Leverage
Jun 30, 2018 24.84% 10.20% 2.44
Mar 31, 2018 21.09% 9.05% 2.33
Dec 31, 2017 19.18% 8.06% 2.38
Sep 30, 2017 17.41% 7.75% 2.25
Jun 30, 2017 18.23% 7.48% 2.44
Mar 31, 2017 18.96% 8.79% 2.16
Dec 31, 2016 20.68% 9.13% 2.27
Sep 30, 2016 21.60% 7.52% 2.87
Jun 30, 2016 23.35% 8.36% 2.79
Mar 31, 2016 25.09% 8.87% 2.83
Dec 31, 2015 33.99% 11.76% 2.89
Sep 30, 2015 33.54% 12.27% 2.73
Jun 30, 2015 28.25% 10.54% 2.68
Mar 31, 2015 29.56% 11.48% 2.58
Dec 31, 2014 23.23% 9.32% 2.49
Sep 30, 2014 21.22% 8.88% 2.39
Jun 30, 2014 23.40% 10.08% 2.32
Mar 31, 2014 19.07% 8.21% 2.32
Dec 31, 2013 18.73% 8.34% 2.25
Sep 30, 2013 18.93% 8.11% 2.33
Jun 30, 2013 14.74% 6.34% 2.32
Mar 31, 2013 19.63% 8.71% 2.25
Dec 31, 2012 19.57% 8.63% 2.27
Sep 30, 2012 19.12% 8.26% 2.31
Jun 30, 2012 % % 2.31
Mar 31, 2012 % % 2.30
Dec 31, 2011 % % 2.30

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

 

The primary reason for the increase in Return on Equity (ROE) over Q3 2018 is the increase in profitability measured by Return on Assets (ROA).


Three-Component Disaggregation of ROE

Emerson Electric Co., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = Net Profit Margin × Asset Turnover × Leverage
Jun 30, 2018 24.84% 12.33% 0.83 2.44
Mar 31, 2018 21.09% 10.83% 0.84 2.33
Dec 31, 2017 19.18% 10.09% 0.80 2.38
Sep 30, 2017 17.41% 9.94% 0.78 2.25
Jun 30, 2017 18.23% 9.84% 0.76 2.44
Mar 31, 2017 18.96% 10.54% 0.83 2.16
Dec 31, 2016 20.68% 11.08% 0.82 2.27
Sep 30, 2016 21.60% 11.26% 0.67 2.87
Jun 30, 2016 23.35% 11.25% 0.74 2.79
Mar 31, 2016 25.09% 10.59% 0.84 2.83
Dec 31, 2015 33.99% 12.64% 0.93 2.89
Sep 30, 2015 33.54% 12.15% 1.01 2.73
Jun 30, 2015 28.25% 10.61% 0.99 2.68
Mar 31, 2015 29.56% 10.94% 1.05 2.58
Dec 31, 2014 23.23% 9.01% 1.03 2.49
Sep 30, 2014 21.22% 8.75% 1.01 2.39
Jun 30, 2014 23.40% 10.32% 0.98 2.32
Mar 31, 2014 19.07% 8.13% 1.01 2.32
Dec 31, 2013 18.73% 8.14% 1.02 2.25
Sep 30, 2013 18.93% 8.12% 1.00 2.33
Jun 30, 2013 14.74% 6.07% 1.04 2.32
Mar 31, 2013 19.63% 8.37% 1.04 2.25
Dec 31, 2012 19.57% 8.32% 1.04 2.27
Sep 30, 2012 19.12% 8.06% 1.02 2.31
Jun 30, 2012 % % 2.31
Mar 31, 2012 % % 2.30
Dec 31, 2011 % % 2.30

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

 

The primary reason for the increase in Return on Equity (ROE) over Q3 2018 is the increase in profitability measured by Net Profit Margin.


Five-Component Disaggregation of ROE

Emerson Electric Co., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Leverage
Jun 30, 2018 24.84% 0.80 0.93 16.50% 0.83 2.44
Mar 31, 2018 21.09% 0.73 0.93 16.04% 0.84 2.33
Dec 31, 2017 19.18% 0.70 0.92 15.60% 0.80 2.38
Sep 30, 2017 17.41% 0.70 0.92 15.59% 0.78 2.25
Jun 30, 2017 18.23% 0.69 0.91 15.74% 0.76 2.44
Mar 31, 2017 18.96% 0.69 0.91 16.64% 0.83 2.16
Dec 31, 2016 20.68% 0.71 0.91 17.17% 0.82 2.27
Sep 30, 2016 21.60% 0.70 0.92 17.54% 0.67 2.87
Jun 30, 2016 23.35% 0.68 0.93 17.73% 0.74 2.79
Mar 31, 2016 25.09% 0.69 0.93 16.49% 0.84 2.83
Dec 31, 2015 33.99% 0.66 0.95 20.21% 0.93 2.89
Sep 30, 2015 33.54% 0.65 0.95 19.45% 1.01 2.73
Jun 30, 2015 28.25% 0.62 0.95 17.86% 0.99 2.68
Mar 31, 2015 29.56% 0.62 0.95 18.42% 1.05 2.58
Dec 31, 2014 23.23% 0.64 0.94 14.90% 1.03 2.49
Sep 30, 2014 21.22% 0.65 0.94 14.38% 1.01 2.39
Jun 30, 2014 23.40% 0.69 0.94 15.86% 0.98 2.32
Mar 31, 2014 19.07% 0.65 0.93 13.53% 1.01 2.32
Dec 31, 2013 18.73% 0.65 0.93 13.50% 1.02 2.25
Sep 30, 2013 18.93% 0.64 0.93 13.65% 1.00 2.33
Jun 30, 2013 14.74% 0.59 0.92 11.30% 1.04 2.32
Mar 31, 2013 19.63% 0.65 0.93 13.86% 1.04 2.25
Dec 31, 2012 19.57% 0.65 0.93 13.85% 1.04 2.27
Sep 30, 2012 19.12% 0.64 0.93 13.52% 1.02 2.31
Jun 30, 2012 % % 2.31
Mar 31, 2012 % % 2.30
Dec 31, 2011 % % 2.30

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

 

The primary reason for the increase in Return on Equity (ROE) over Q3 2018 is the increase in effect of taxes measured by Tax Burden.


Two-Way Decomposition of ROA

Emerson Electric Co., decomposition of ROA (quarterly data)

Microsoft Excel LibreOffice Calc
ROA = Net Profit Margin × Asset Turnover
Jun 30, 2018 10.20% 12.33% 0.83
Mar 31, 2018 9.05% 10.83% 0.84
Dec 31, 2017 8.06% 10.09% 0.80
Sep 30, 2017 7.75% 9.94% 0.78
Jun 30, 2017 7.48% 9.84% 0.76
Mar 31, 2017 8.79% 10.54% 0.83
Dec 31, 2016 9.13% 11.08% 0.82
Sep 30, 2016 7.52% 11.26% 0.67
Jun 30, 2016 8.36% 11.25% 0.74
Mar 31, 2016 8.87% 10.59% 0.84
Dec 31, 2015 11.76% 12.64% 0.93
Sep 30, 2015 12.27% 12.15% 1.01
Jun 30, 2015 10.54% 10.61% 0.99
Mar 31, 2015 11.48% 10.94% 1.05
Dec 31, 2014 9.32% 9.01% 1.03
Sep 30, 2014 8.88% 8.75% 1.01
Jun 30, 2014 10.08% 10.32% 0.98
Mar 31, 2014 8.21% 8.13% 1.01
Dec 31, 2013 8.34% 8.14% 1.02
Sep 30, 2013 8.11% 8.12% 1.00
Jun 30, 2013 6.34% 6.07% 1.04
Mar 31, 2013 8.71% 8.37% 1.04
Dec 31, 2012 8.63% 8.32% 1.04
Sep 30, 2012 8.26% 8.06% 1.02
Jun 30, 2012 % %
Mar 31, 2012 % %
Dec 31, 2011 % %

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

 

The primary reason for the increase in Return on Assets (ROA) over Q3 2018 is the increase in profitability measured by Net Profit Margin.


Four-Way Decomposition of ROA

Emerson Electric Co., decomposition of ROA (quarterly data)

Microsoft Excel LibreOffice Calc
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Jun 30, 2018 10.20% 0.80 0.93 16.50% 0.83
Mar 31, 2018 9.05% 0.73 0.93 16.04% 0.84
Dec 31, 2017 8.06% 0.70 0.92 15.60% 0.80
Sep 30, 2017 7.75% 0.70 0.92 15.59% 0.78
Jun 30, 2017 7.48% 0.69 0.91 15.74% 0.76
Mar 31, 2017 8.79% 0.69 0.91 16.64% 0.83
Dec 31, 2016 9.13% 0.71 0.91 17.17% 0.82
Sep 30, 2016 7.52% 0.70 0.92 17.54% 0.67
Jun 30, 2016 8.36% 0.68 0.93 17.73% 0.74
Mar 31, 2016 8.87% 0.69 0.93 16.49% 0.84
Dec 31, 2015 11.76% 0.66 0.95 20.21% 0.93
Sep 30, 2015 12.27% 0.65 0.95 19.45% 1.01
Jun 30, 2015 10.54% 0.62 0.95 17.86% 0.99
Mar 31, 2015 11.48% 0.62 0.95 18.42% 1.05
Dec 31, 2014 9.32% 0.64 0.94 14.90% 1.03
Sep 30, 2014 8.88% 0.65 0.94 14.38% 1.01
Jun 30, 2014 10.08% 0.69 0.94 15.86% 0.98
Mar 31, 2014 8.21% 0.65 0.93 13.53% 1.01
Dec 31, 2013 8.34% 0.65 0.93 13.50% 1.02
Sep 30, 2013 8.11% 0.64 0.93 13.65% 1.00
Jun 30, 2013 6.34% 0.59 0.92 11.30% 1.04
Mar 31, 2013 8.71% 0.65 0.93 13.86% 1.04
Dec 31, 2012 8.63% 0.65 0.93 13.85% 1.04
Sep 30, 2012 8.26% 0.64 0.93 13.52% 1.02
Jun 30, 2012 % %
Mar 31, 2012 % %
Dec 31, 2011 % %

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

 

The primary reason for the increase in Return on Assets (ROA) over Q3 2018 is the increase in effect of taxes measured by Tax Burden.


Decomposition of Net Profit Margin

Emerson Electric Co., decomposition of Net Profit Margin (quarterly data)

Microsoft Excel LibreOffice Calc
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Jun 30, 2018 12.33% 0.80 0.93 16.50%
Mar 31, 2018 10.83% 0.73 0.93 16.04%
Dec 31, 2017 10.09% 0.70 0.92 15.60%
Sep 30, 2017 9.94% 0.70 0.92 15.59%
Jun 30, 2017 9.84% 0.69 0.91 15.74%
Mar 31, 2017 10.54% 0.69 0.91 16.64%
Dec 31, 2016 11.08% 0.71 0.91 17.17%
Sep 30, 2016 11.26% 0.70 0.92 17.54%
Jun 30, 2016 11.25% 0.68 0.93 17.73%
Mar 31, 2016 10.59% 0.69 0.93 16.49%
Dec 31, 2015 12.64% 0.66 0.95 20.21%
Sep 30, 2015 12.15% 0.65 0.95 19.45%
Jun 30, 2015 10.61% 0.62 0.95 17.86%
Mar 31, 2015 10.94% 0.62 0.95 18.42%
Dec 31, 2014 9.01% 0.64 0.94 14.90%
Sep 30, 2014 8.75% 0.65 0.94 14.38%
Jun 30, 2014 10.32% 0.69 0.94 15.86%
Mar 31, 2014 8.13% 0.65 0.93 13.53%
Dec 31, 2013 8.14% 0.65 0.93 13.50%
Sep 30, 2013 8.12% 0.64 0.93 13.65%
Jun 30, 2013 6.07% 0.59 0.92 11.30%
Mar 31, 2013 8.37% 0.65 0.93 13.86%
Dec 31, 2012 8.32% 0.65 0.93 13.85%
Sep 30, 2012 8.06% 0.64 0.93 13.52%
Jun 30, 2012 % %
Mar 31, 2012 % %
Dec 31, 2011 % %

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

 

The primary reason for the increase in Net Profit Margin over Q3 2018 is the increase in effect of taxes measured by Tax Burden.