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

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

	ROE	=	ROA	×	Financial Leverage

Sep 30, 2019	-17.71%	=	-1.88%	×	9.42
Jun 30, 2019	-51.07%	=	-5.86%	×	8.71
Mar 31, 2019	-50.11%	=	-5.59%	×	8.96
Dec 31, 2018	-72.16%	=	-7.23%	×	9.98
Sep 30, 2018	-104.15%	=	-10.51%	×	9.91
Jun 30, 2018	-14.81%	=	-2.38%	×	6.22
Mar 31, 2018	-13.55%	=	-2.12%	×	6.40
Dec 31, 2017	-9.00%	=	-1.53%	×	5.88
Sep 30, 2017	9.89%	=	1.99%	×	4.97
Jun 30, 2017	10.40%	=	2.17%	×	4.79
Mar 31, 2017	12.42%	=	2.63%	×	4.72
Dec 31, 2016	11.65%	=	2.42%	×	4.82
Sep 30, 2016	14.00%	=	2.96%	×	4.73
Jun 30, 2016	14.05%	=	2.97%	×	4.72
Mar 31, 2016	8.43%	=	1.66%	×	5.07
Dec 31, 2015	-6.23%	=	-1.24%	×	5.01
Sep 30, 2015	-6.54%	=	-1.25%	×	5.23
Jun 30, 2015	-5.70%	=	-1.02%	×	5.58
Mar 31, 2015	-1.23%	=	-0.22%	×	5.69
Dec 31, 2014	11.89%	=	2.35%	×	5.06
Sep 30, 2014	—	=	—	×	4.82
Jun 30, 2014	—	=	—	×	4.86
Mar 31, 2014	—	=	—	×	4.95

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

	ROE	=	Net Profit Margin	×	Asset Turnover	×	Financial Leverage

Sep 30, 2019	-17.71%	=	-4.72%	×	0.40	×	9.42
Jun 30, 2019	-51.07%	=	-16.52%	×	0.35	×	8.71
Mar 31, 2019	-50.11%	=	-15.73%	×	0.36	×	8.96
Dec 31, 2018	-72.16%	=	-19.69%	×	0.37	×	9.98
Sep 30, 2018	-104.15%	=	-28.80%	×	0.36	×	9.91
Jun 30, 2018	-14.81%	=	-7.05%	×	0.34	×	6.22
Mar 31, 2018	-13.55%	=	-6.61%	×	0.32	×	6.40
Dec 31, 2017	-9.00%	=	-5.11%	×	0.30	×	5.88
Sep 30, 2017	9.89%	=	6.71%	×	0.30	×	4.97
Jun 30, 2017	10.40%	=	7.04%	×	0.31	×	4.79
Mar 31, 2017	12.42%	=	8.39%	×	0.31	×	4.72
Dec 31, 2016	11.65%	=	8.00%	×	0.30	×	4.82
Sep 30, 2016	14.00%	=	10.36%	×	0.29	×	4.73
Jun 30, 2016	14.05%	=	10.92%	×	0.27	×	4.72
Mar 31, 2016	8.43%	=	7.14%	×	0.23	×	5.07
Dec 31, 2015	-6.23%	=	-5.79%	×	0.21	×	5.01
Sep 30, 2015	-6.54%	=	-6.85%	×	0.18	×	5.23
Jun 30, 2015	-5.70%	=	-5.86%	×	0.17	×	5.58
Mar 31, 2015	-1.23%	=	-1.26%	×	0.17	×	5.69
Dec 31, 2014	11.89%	=	14.27%	×	0.16	×	5.06
Sep 30, 2014	—	=	—	×	—	×	4.82
Jun 30, 2014	—	=	—	×	—	×	4.86
Mar 31, 2014	—	=	—	×	—	×	4.95

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

	ROE	=	Tax Burden	×	Interest Burden	×	EBIT Margin	×	Asset Turnover	×	Financial Leverage

Sep 30, 2019	-17.71%	=	—	×	—	×	-0.26%	×	0.40	×	9.42
Jun 30, 2019	-51.07%	=	—	×	—	×	-12.24%	×	0.35	×	8.71
Mar 31, 2019	-50.11%	=	—	×	—	×	-10.61%	×	0.36	×	8.96
Dec 31, 2018	-72.16%	=	—	×	—	×	-14.72%	×	0.37	×	9.98
Sep 30, 2018	-104.15%	=	—	×	—	×	-26.11%	×	0.36	×	9.91
Jun 30, 2018	-14.81%	=	—	×	—	×	-4.82%	×	0.34	×	6.22
Mar 31, 2018	-13.55%	=	—	×	—	×	-4.93%	×	0.32	×	6.40
Dec 31, 2017	-9.00%	=	—	×	—	×	-3.50%	×	0.30	×	5.88
Sep 30, 2017	9.89%	=	1.17	×	0.59	×	9.81%	×	0.30	×	4.97
Jun 30, 2017	10.40%	=	1.10	×	0.62	×	10.30%	×	0.31	×	4.79
Mar 31, 2017	12.42%	=	1.03	×	0.67	×	12.16%	×	0.31	×	4.72
Dec 31, 2016	11.65%	=	1.06	×	0.62	×	12.13%	×	0.30	×	4.82
Sep 30, 2016	14.00%	=	1.04	×	0.68	×	14.71%	×	0.29	×	4.73
Jun 30, 2016	14.05%	=	1.03	×	0.69	×	15.37%	×	0.27	×	4.72
Mar 31, 2016	8.43%	=	1.00	×	0.63	×	11.42%	×	0.23	×	5.07
Dec 31, 2015	-6.23%	=	-17.02	×	0.09	×	3.61%	×	0.21	×	5.01
Sep 30, 2015	-6.54%	=	-13.16	×	0.11	×	4.85%	×	0.18	×	5.23
Jun 30, 2015	-5.70%	=	-3.27	×	0.24	×	7.48%	×	0.17	×	5.58
Mar 31, 2015	-1.23%	=	-0.22	×	0.45	×	13.04%	×	0.17	×	5.69
Dec 31, 2014	11.89%	=	0.90	×	0.64	×	24.81%	×	0.16	×	5.06
Sep 30, 2014	—	=	—	×	—	×	—	×	—	×	4.82
Jun 30, 2014	—	=	—	×	—	×	—	×	—	×	4.86
Mar 31, 2014	—	=	—	×	—	×	—	×	—	×	4.95

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

	ROA	=	Net Profit Margin	×	Asset Turnover

Sep 30, 2019	-1.88%	=	-4.72%	×	0.40
Jun 30, 2019	-5.86%	=	-16.52%	×	0.35
Mar 31, 2019	-5.59%	=	-15.73%	×	0.36
Dec 31, 2018	-7.23%	=	-19.69%	×	0.37
Sep 30, 2018	-10.51%	=	-28.80%	×	0.36
Jun 30, 2018	-2.38%	=	-7.05%	×	0.34
Mar 31, 2018	-2.12%	=	-6.61%	×	0.32
Dec 31, 2017	-1.53%	=	-5.11%	×	0.30
Sep 30, 2017	1.99%	=	6.71%	×	0.30
Jun 30, 2017	2.17%	=	7.04%	×	0.31
Mar 31, 2017	2.63%	=	8.39%	×	0.31
Dec 31, 2016	2.42%	=	8.00%	×	0.30
Sep 30, 2016	2.96%	=	10.36%	×	0.29
Jun 30, 2016	2.97%	=	10.92%	×	0.27
Mar 31, 2016	1.66%	=	7.14%	×	0.23
Dec 31, 2015	-1.24%	=	-5.79%	×	0.21
Sep 30, 2015	-1.25%	=	-6.85%	×	0.18
Jun 30, 2015	-1.02%	=	-5.86%	×	0.17
Mar 31, 2015	-0.22%	=	-1.26%	×	0.17
Dec 31, 2014	2.35%	=	14.27%	×	0.16
Sep 30, 2014	—	=	—	×	—
Jun 30, 2014	—	=	—	×	—
Mar 31, 2014	—	=	—	×	—

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

	ROA	=	Tax Burden	×	Interest Burden	×	EBIT Margin	×	Asset Turnover

Sep 30, 2019	-1.88%	=	—	×	—	×	-0.26%	×	0.40
Jun 30, 2019	-5.86%	=	—	×	—	×	-12.24%	×	0.35
Mar 31, 2019	-5.59%	=	—	×	—	×	-10.61%	×	0.36
Dec 31, 2018	-7.23%	=	—	×	—	×	-14.72%	×	0.37
Sep 30, 2018	-10.51%	=	—	×	—	×	-26.11%	×	0.36
Jun 30, 2018	-2.38%	=	—	×	—	×	-4.82%	×	0.34
Mar 31, 2018	-2.12%	=	—	×	—	×	-4.93%	×	0.32
Dec 31, 2017	-1.53%	=	—	×	—	×	-3.50%	×	0.30
Sep 30, 2017	1.99%	=	1.17	×	0.59	×	9.81%	×	0.30
Jun 30, 2017	2.17%	=	1.10	×	0.62	×	10.30%	×	0.31
Mar 31, 2017	2.63%	=	1.03	×	0.67	×	12.16%	×	0.31
Dec 31, 2016	2.42%	=	1.06	×	0.62	×	12.13%	×	0.30
Sep 30, 2016	2.96%	=	1.04	×	0.68	×	14.71%	×	0.29
Jun 30, 2016	2.97%	=	1.03	×	0.69	×	15.37%	×	0.27
Mar 31, 2016	1.66%	=	1.00	×	0.63	×	11.42%	×	0.23
Dec 31, 2015	-1.24%	=	-17.02	×	0.09	×	3.61%	×	0.21
Sep 30, 2015	-1.25%	=	-13.16	×	0.11	×	4.85%	×	0.18
Jun 30, 2015	-1.02%	=	-3.27	×	0.24	×	7.48%	×	0.17
Mar 31, 2015	-0.22%	=	-0.22	×	0.45	×	13.04%	×	0.17
Dec 31, 2014	2.35%	=	0.90	×	0.64	×	24.81%	×	0.16
Sep 30, 2014	—	=	—	×	—	×	—	×	—
Jun 30, 2014	—	=	—	×	—	×	—	×	—
Mar 31, 2014	—	=	—	×	—	×	—	×	—

General Electric Co., decomposition of net profit margin ratio (quarterly data)

	Net Profit Margin	=	Tax Burden	×	Interest Burden	×	EBIT Margin

Sep 30, 2019	-4.72%	=	—	×	—	×	-0.26%
Jun 30, 2019	-16.52%	=	—	×	—	×	-12.24%
Mar 31, 2019	-15.73%	=	—	×	—	×	-10.61%
Dec 31, 2018	-19.69%	=	—	×	—	×	-14.72%
Sep 30, 2018	-28.80%	=	—	×	—	×	-26.11%
Jun 30, 2018	-7.05%	=	—	×	—	×	-4.82%
Mar 31, 2018	-6.61%	=	—	×	—	×	-4.93%
Dec 31, 2017	-5.11%	=	—	×	—	×	-3.50%
Sep 30, 2017	6.71%	=	1.17	×	0.59	×	9.81%
Jun 30, 2017	7.04%	=	1.10	×	0.62	×	10.30%
Mar 31, 2017	8.39%	=	1.03	×	0.67	×	12.16%
Dec 31, 2016	8.00%	=	1.06	×	0.62	×	12.13%
Sep 30, 2016	10.36%	=	1.04	×	0.68	×	14.71%
Jun 30, 2016	10.92%	=	1.03	×	0.69	×	15.37%
Mar 31, 2016	7.14%	=	1.00	×	0.63	×	11.42%
Dec 31, 2015	-5.79%	=	-17.02	×	0.09	×	3.61%
Sep 30, 2015	-6.85%	=	-13.16	×	0.11	×	4.85%
Jun 30, 2015	-5.86%	=	-3.27	×	0.24	×	7.48%
Mar 31, 2015	-1.26%	=	-0.22	×	0.45	×	13.04%
Dec 31, 2014	14.27%	=	0.90	×	0.64	×	24.81%
Sep 30, 2014	—	=	—	×	—	×	—
Jun 30, 2014	—	=	—	×	—	×	—
Mar 31, 2014	—	=	—	×	—	×	—

General Electric Co. (GE)

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