DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data
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 (quarterly data)
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Return on Assets (ROA)
- The Return on Assets ratio exhibits a significant recovery trend over the analyzed periods. Initially, in 2020, the ROA was negative, with a trough around -6.74% in late March 2020, indicating asset inefficiency or operational challenges during that time. From early 2021 onwards, the ROA improved steadily, turning positive by the first quarter of 2021. It peaked in late 2022 with values exceeding 14%, reflecting enhanced profitability relative to the company's asset base. Following this peak, a gradual decline is observed through 2023 and into 2025, with ROA values settling in the range of approximately 6.9% to 7.4%, suggesting a normalization or stabilization of asset returns at a moderate positive level. Overall, the trend shows initial distress, recovery, and subsequent stabilization.
- Financial Leverage
- The Financial Leverage ratio stayed relatively stable throughout the periods but shows a subtle downward trend overall. Starting near 1.95x in early 2020, leverage slightly increased to a peak of about 2.13x around the middle of 2021, potentially indicating increased use of debt or liabilities during the recovery phase. Post mid-2021, the leverage ratio gradually declined through 2023 and remained relatively steady around 1.7x from early 2024 through mid-2025. This pattern suggests cautious deleveraging or a strategic management of capital structure to reduce dependency on external financing, which could be aimed at lowering financial risk.
- Return on Equity (ROE)
- Return on Equity shows pronounced volatility with a marked turnaround during the timeline. Negative values were observed in 2020, with the lowest point at -14.28% in the first quarter of 2020, indicating significant losses relative to shareholder equity. From 2021, ROE improved dramatically, reaching highs above 27% by late 2022, reflecting strong profitability and efficient use of equity capital. Subsequently, a declining yet positive trend persisted into 2025, where ROE values settled around 11.8% to 12.7%. This indicates the company sustained positive returns on equity but experienced a moderation from peak profitability levels. The trends in ROE align closely with the trajectory seen in ROA but amplified due to financial leverage effects.
Three-Component Disaggregation of ROE
Exxon Mobil Corp., decomposition of ROE (quarterly data)
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Net Profit Margin
- The net profit margin exhibited a markedly negative trend during 2020, reaching a low of -12.57% at the end of March 2020 and gradually improving to -2.45% by December 2020. Starting in 2021, this metric showed a strong positive recovery, climbing from 8.33% in March 2021 to a peak of 14.87% in June 2023. After this peak, a gradual decline ensued, with the margin stabilizing around 9.4% to 10% from late 2023 through mid-2025, indicating a normalization following a period of strong profitability.
- Asset Turnover
- Asset turnover was initially unreported for much of 2020 but started at 0.54 in March 2020 and experienced an upward trend reaching a peak of 1.08 in March 2023. This indicates increasing efficiency in generating sales from asset usage over this period. However, from mid-2023 onwards, asset turnover declined steadily to approximately 0.74 by the first half of 2025, suggesting a reduction in asset utilization efficiency in later quarters.
- Financial Leverage
- Financial leverage showed minor fluctuations across the timeline. Starting at 1.95 in early 2020, the ratio rose slightly to 2.13 by mid-2021, indicating a modest increase in reliance on debt or liabilities relative to equity. From late 2021, a gradual decrease occurred, reducing leverage to around 1.7 by mid-2025. This consistent downward trend points to a cautious approach in capital structure management, with a preference for lower leverage in recent periods.
- Return on Equity (ROE)
- ROE mirrored the pattern of net profit margin, with significant negative values observed in 2020, reaching -14.28% in March 2020 and improving to -3.67% by the end of that year. The ROE turned positive in 2021 and increased sharply, peaking at 29.54% in June 2023. After this peak, a notable decline occurred, with ROE tapering to around 11.8% by mid-2025. This decline aligns with the reduction in net profit margin and asset turnover, reflecting a normalization of equity returns after a period of exceptional performance.
Five-Component Disaggregation of ROE
Exxon Mobil Corp., decomposition of ROE (quarterly data)
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Tax Burden
- The tax burden ratio data is available from March 31, 2022, onwards. It shows a moderate decline from 0.75 in early 2022 to 0.67 by December 31, 2023, followed by a slight recovery to around 0.7 and remaining stable through mid-2025. This suggests a relatively consistent but slightly improving post-tax profitability environment over the recent periods.
- Interest Burden
- The interest burden ratio remains remarkably stable at approximately 0.97 to 0.99 throughout the observed periods from March 31, 2022, to June 30, 2025. This indicates the company maintained a consistent ability to cover interest expenses with earnings before interest and taxes, reflecting stability in financial obligations related to debt.
- EBIT Margin
- From the start of 2020, the EBIT margin experienced a substantial negative trend, with margins as low as -15.07% in September 2020, indicating significant operational challenges during that period. However, beginning in early 2021, there was a strong recovery, with margins turning positive and reaching a peak of approximately 20.73% by June 30, 2023. Following this peak, the EBIT margin showed a gradual downward trend, stabilizing around 13.57% to 14.66% by late 2024 and early 2025. This pattern suggests a recovery phase followed by a normalization or slight easing in operating profitability.
- Asset Turnover
- The asset turnover ratio displayed a steady improvement from about 0.54 at the end of 2020 to a peak of 1.08 by March 31, 2023, indicating increasingly efficient use of assets to generate revenues. After this peak, a decline is observed, with ratios moving downward to approximately 0.74 to 0.75 by mid-2024 and maintaining this level through June 2025. This signifies an initial phase of improved asset utilization followed by a period of reduced efficiency or a stabilization at a lower level.
- Financial Leverage
- Financial leverage has shown a gradual but consistent decline from around 2.12 in December 2020 to about 1.70 by June 2025. The reduction in leverage indicates a decreasing reliance on debt financing relative to equity. This trend reflects a more conservative capital structure or deleveraging strategy over the observed periods.
- Return on Equity (ROE)
- ROE mirrors the trends observed in EBIT margin, starting from negative values in 2020 reaching a trough of -14.28% and -12.17%, then improving to a peak of approximately 29.54% by June 30, 2023. Subsequent periods see a declining trend in ROE, falling to around 11.81% by June 2025. This pattern indicates recovery and strong growth in shareholder returns post-2020, followed by stabilization at a still positive but reduced profitability level.
Two-Component Disaggregation of ROA
Exxon Mobil Corp., decomposition of ROA (quarterly data)
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Net Profit Margin
- The net profit margin demonstrates a significant recovery over the analyzed periods. Initially, during 2020, negative margins were recorded, reaching as low as -12.57% in the first quarter and showing gradual improvement by the end of 2020. From 2021 onwards, the margin turned positive, starting at 8.33% in the first quarter of 2021 and increasing to a peak of 14.87% by the second quarter of 2023. However, after this peak, a declining trend is observed, with margins decreasing to around 9.42% by the second quarter of 2025. Overall, the data indicates a rebound from early significant losses to stable profitability, followed by a modest decline in the most recent periods.
- Asset Turnover
- Asset turnover ratios exhibit an upward trend from 2020 through early 2023, beginning at 0.54 in the first quarter of 2020 and steadily increasing to reach a peak of 1.08 by the first quarter of 2023. This suggests improving efficiency in using assets to generate revenue during this period. Starting mid-2023, the ratio shows a consistent decline, reducing to 0.74 by the second quarter of 2025. This decrease signals a reduction in asset utilization efficiency in the later periods, which may warrant further investigation.
- Return on Assets (ROA)
- Return on assets follows a pattern similar to the net profit margin. The ROA began with negative values in 2020, the lowest being -6.74%, showing signs of reduction in losses by the end of that year. The ratio turned positive in 2021, improving steadily and peaking at 15.89% in the second quarter of 2023. After this peak, a downward trend is evident, falling to approximately 6.93% by the second quarter of 2025. This trajectory reflects an initial recovery and strong asset profitability, with tapering returns in the most recent periods.
Four-Component Disaggregation of ROA
Exxon Mobil Corp., decomposition of ROA (quarterly data)
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Tax Burden
- The tax burden ratio maintained relative stability from the available data starting in March 2022 through June 2025. Values fluctuated slightly between 0.67 and 0.75, indicating consistent tax expense levels relative to pre-tax income over this period. A slight downward trend is observable towards the end, with the ratio decreasing from 0.75 in March 2022 to approximately 0.71 by June 2025, suggesting marginally improved tax efficiency or changes in tax strategies.
- Interest Burden
- The interest burden ratio demonstrates very limited variance, remaining in a narrow range between 0.97 and 0.99 from March 2022 through June 2025. This suggests stable interest expenses relative to earnings before interest and taxes (EBIT), indicating consistent debt servicing costs and financial leverage throughout the observed quarters.
- EBIT Margin
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There is a clear upward trajectory in EBIT margin beginning in late 2020, transitioning from negative values to positive and then exhibiting growth throughout 2021 and into 2023. The margin improved from -15.07% in September 2020 to a peak around 20.73% in June 2023, reflecting enhanced operational profitability. However, a gradual decline in EBIT margin is noticeable starting midsummer 2023, tapering down to 13.57% by September 2024, and further to 14.04% and 13.57% by December 2024 and September 2025 respectively, indicating some easing in profitability after the peak period.
- Asset Turnover
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Asset turnover shows an initial strengthening trend from late 2020 through the end of 2022, rising from 0.54 to a peak of approximately 1.08 by March 2023. This increase points to improved efficiency in using assets to generate revenue. However, starting in mid-2023, asset turnover begins a downward adjustment, declining gradually to 0.74 by the mid and late quarters of 2024 and remaining stable around that figure through mid-2025, which may signal stabilizing or slight deterioration in asset utilization efficiency after a period of strong growth.
- Return on Assets (ROA)
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The return on assets mirrors the overall improvement in profitability seen in EBIT margin with a pronounced recovery from negative values in 2020 to positive territory in 2021. Starting at -6.74% in September 2020, ROA climbs steadily to a peak near 15.89% by June 2023. After reaching this peak, ROA decreases progressively, falling to levels between 6.93% and 9.57% by mid-2025. This pattern indicates a recovery followed by a normalizing or moderating phase in asset profitability.
Disaggregation of Net Profit Margin
Exxon Mobil Corp., decomposition of net profit margin ratio (quarterly data)
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Tax Burden Ratio
- The tax burden ratio exhibits relative stability during the periods with available data, ranging approximately between 0.67 and 0.75. A slight declining trend can be observed from a high of 0.75 in late 2021 to around 0.70 in 2024 and 2025, indicating a modest decrease in the effective tax impact on pre-tax earnings over time.
- Interest Burden Ratio
- This ratio remains consistently high and stable, hovering between 0.97 and 0.99 across all reported quarters from 2021 onwards. This suggests minimal variation in interest expenses relative to EBIT, reflecting consistent financing costs or efficient management of interest-bearing liabilities.
- EBIT Margin
- The EBIT margin demonstrates a significant improvement over the analyzed timeframe. Initially, in the first periods recorded, it was substantially negative, reaching a low of around -15% in Q2 2020. Thereafter, a steady recovery is evident, turning positive by Q1 2021 and peaking near 20.7% at the midpoint of 2023. Following this peak, a gradual decline in the margin occurs throughout the remainder of the analyzed periods, settling around 13.6% by the end of Q2 2025. The initial negative margins align with challenging economic or operational conditions in 2020, while the subsequent rebound suggests recovery and improved operational efficiency. The decline from the peak indicates some softening of operating profitability towards the latest quarters.
- Net Profit Margin
- Similar to the EBIT margin, the net profit margin starts at negative values close to -12.6% in early 2020, reflecting losses during that period. A consistent upward trajectory follows, breaching positive territory around early 2021 and reaching a high near 14.9% in mid-2023. Subsequently, there is a downward adjustment with margins stabilizing in the range of approximately 9.4% to 10.8% by mid-2025. This pattern indicates recuperation in bottom-line profitability after earlier losses, and a tendency toward normalization or slight profitability contraction in recent quarters.