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