Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Exxon Mobil Corp. (NYSE:XOM)

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

Beginner level

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Exxon Mobil Corp., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = ROA × Financial Leverage
Dec 31, 2020 -14.28% = -6.74% × 2.12
Dec 31, 2019 7.48% = 3.95% × 1.89
Dec 31, 2018 10.87% = 6.02% × 1.81
Dec 31, 2017 10.50% = 5.65% × 1.86
Dec 31, 2016 4.69% = 2.37% × 1.97

Based on: 10-K (filing date: 2021-02-24), 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-22).

The primary reason for the decrease in return on equity ratio (ROE) over 2020 year is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Exxon Mobil Corp., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2020 -14.28% = -12.57% × 0.54 × 2.12
Dec 31, 2019 7.48% = 5.61% × 0.70 × 1.89
Dec 31, 2018 10.87% = 7.46% × 0.81 × 1.81
Dec 31, 2017 10.50% = 8.31% × 0.68 × 1.86
Dec 31, 2016 4.69% = 3.59% × 0.66 × 1.97

Based on: 10-K (filing date: 2021-02-24), 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-22).

The primary reason for the decrease in return on equity ratio (ROE) over 2020 year is the decrease in profitability measured by net profit margin ratio.

Five-Component Disaggregation of ROE

Exxon Mobil Corp., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 31, 2020 -14.28% = — × — × -15.07% × 0.54 × 2.12
Dec 31, 2019 7.48% = 0.73 × 0.96 × 8.00% × 0.70 × 1.89
Dec 31, 2018 10.87% = 0.69 × 0.98 × 11.15% × 0.81 × 1.81
Dec 31, 2017 10.50% = 1.06 × 0.97 × 8.07% × 0.68 × 1.86
Dec 31, 2016 4.69% = 1.05 × 0.94 × 3.61% × 0.66 × 1.97

Based on: 10-K (filing date: 2021-02-24), 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-22).

Two-Component Disaggregation of ROA

Exxon Mobil Corp., decomposition of ROA

Microsoft Excel LibreOffice Calc
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2020 -6.74% = -12.57% × 0.54
Dec 31, 2019 3.95% = 5.61% × 0.70
Dec 31, 2018 6.02% = 7.46% × 0.81
Dec 31, 2017 5.65% = 8.31% × 0.68
Dec 31, 2016 2.37% = 3.59% × 0.66

Based on: 10-K (filing date: 2021-02-24), 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-22).

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

Four-Component Disaggregation of ROA

Exxon Mobil Corp., decomposition of ROA

Microsoft Excel LibreOffice Calc
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2020 -6.74% = — × — × -15.07% × 0.54
Dec 31, 2019 3.95% = 0.73 × 0.96 × 8.00% × 0.70
Dec 31, 2018 6.02% = 0.69 × 0.98 × 11.15% × 0.81
Dec 31, 2017 5.65% = 1.06 × 0.97 × 8.07% × 0.68
Dec 31, 2016 2.37% = 1.05 × 0.94 × 3.61% × 0.66

Based on: 10-K (filing date: 2021-02-24), 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-22).

Disaggregation of Net Profit Margin

Exxon Mobil Corp., decomposition of net profit margin ratio

Microsoft Excel LibreOffice Calc
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2020 -12.57% = — × — × -15.07%
Dec 31, 2019 5.61% = 0.73 × 0.96 × 8.00%
Dec 31, 2018 7.46% = 0.69 × 0.98 × 11.15%
Dec 31, 2017 8.31% = 1.06 × 0.97 × 8.07%
Dec 31, 2016 3.59% = 1.05 × 0.94 × 3.61%

Based on: 10-K (filing date: 2021-02-24), 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-22).