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.
Paying user area
Try for free
FedEx Corp. pages available for free this week:
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to FedEx Corp. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Two-Component Disaggregation of ROE
FedEx Corp., decomposition of ROE (quarterly data)
Based on: 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-K (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31).
- Return on Assets (ROA)
- The Return on Assets exhibited an initial upward trajectory from 2.3% in August 2020 to a peak of 6.32% in May 2021. Following this peak, ROA declined gradually to 3.49% by February 2023. After this low point, there was a moderate recovery pattern with ROA increasing again to approximately 5.1% by February 2024, followed by a slight downward movement, stabilizing around 4.6% through August 2025. This pattern indicates variability in asset profitability with periods of improvement and contraction over the examined timeframe.
- Financial Leverage
- The Financial Leverage ratio demonstrated a general decreasing trend from 3.99 in August 2020 to approximately 3.15 by May 2024, indicating a reduction in the extent to which the company is funding its assets through debt. There were minor fluctuations throughout the periods, but the overall direction suggests a gradual de-leveraging or more conservative capital structure approach toward the later periods.
- Return on Equity (ROE)
- Return on Equity showed a strong rising trend initially, growing from 9.18% in August 2020 to a peak of 21.64% in May 2021, similar to the ROA pattern. Post-peak, ROE experienced a marked decline reaching a low of 12.1% by February 2023. Subsequently, the company achieved a recovery in ROE, stabilizing around 15% to 16% range from May 2023 through August 2025. The trend in ROE aligns with changes in ROA and financial leverage, reflecting both operational efficiency and financial structure impacts.
- Overall Financial Insights
- The analysis reveals an initial period of improving profitability evidenced by rising ROA and ROE up to mid-2021, coinciding with a decrease in financial leverage. This suggests effective asset utilization and profitable equity returns during this time. The subsequent decline in profitability measures until early 2023 points to challenges in maintaining earnings relative to assets and equity despite stable leverage ratios. The partial recoveries in profitability metrics after early 2023 indicate resumed operational or market improvements. The steady decline in financial leverage over the years implies a strategic shift towards lower debt reliance, potentially to mitigate risk or improve financial stability, which may influence profitability metrics in conjunction with operational changes.
Three-Component Disaggregation of ROE
FedEx Corp., decomposition of ROE (quarterly data)
Based on: 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-K (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31).
- Net Profit Margin
- The net profit margin exhibited an overall upward trend from August 2020 through February 2024, increasing from 2.5% to a peak around 5.02%. This improvement indicates enhanced profitability over the period. However, from May 2024 to August 2025, the margin stabilized between approximately 4.45% and 4.65%, reflecting a period of relative consistency without significant growth.
- Asset Turnover
- The asset turnover ratio showed a gradual increase from 0.92 in August 2020 to a high of around 1.10 during late 2021 and early 2022, suggesting improved efficiency in utilizing assets to generate revenue. Subsequently, the ratio declined slightly but remained mostly stable around 1.00 to 1.03 through August 2025, indicating a plateau in asset efficiency during the later periods.
- Financial Leverage
- Financial leverage decreased steadily from 3.99 in August 2020 to approximately 3.12 by August 2025. This downward trend reflects a gradual reduction in the company's reliance on debt or liabilities to finance its assets, potentially indicating an improvement in financial stability and risk management over the observed time frame.
- Return on Equity (ROE)
- ROE increased significantly from 9.18% in August 2020 to a peak of 21.64% in May 2021, signaling a period of robust profitability relative to shareholder equity. Following this peak, the ROE declined to a lower range between 12.1% and 16.66% from late 2021 through August 2025, with fluctuations suggesting variability in net income generation relative to equity. Throughout the latter period, ROE generally remained strong, representing sustained shareholder value creation despite the post-peak moderation.
Two-Component Disaggregation of ROA
FedEx Corp., decomposition of ROA (quarterly data)
Based on: 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-K (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31).
- Net Profit Margin
- The net profit margin showed an upward trend from August 2020, starting at 2.5%, reaching a peak of 6.23% by May 2021. Following this peak, there was a gradual decline to 3.23% by February 2023. From this trough, the margin gradually recovered, stabilizing around the mid-4% range, with values fluctuating between 4.41% and 5.02% through to August 2025. This pattern suggests an initial phase of improving profitability, followed by a period of contraction, and subsequent stabilization at a moderately improved profitability level compared to the 2020 base.
- Asset Turnover
- Asset turnover increased consistently from a ratio of 0.92 in August 2020 to a peak of 1.10 during August 2022 and November 2022, indicating improved efficiency in utilizing assets to generate sales. After reaching this peak, a gradual decline ensued, bringing the ratio down to approximately 1.00 to 1.03 in the later periods through to August 2025. This suggests that while overall efficiency increased during the initial years, it slightly tapered off but remained stable near the initial baseline in the most recent quarters.
- Return on Assets (ROA)
- The ROA demonstrated a pattern consistent with net profit margin, starting at 2.3% in August 2020 and increasing sharply to a high of 6.32% by May 2021. Thereafter, it experienced a decline, reaching a low of 3.49% in February 2023. Following this low, ROA recovered moderately and stabilized in the range of 4.5% to 5.1% through August 2025. The trends indicate that asset profitability improved substantially at first, then faced pressure before settling at a level significantly higher than the starting point, reflecting improved overall asset performance over the period.