Stock Analysis on Net
Stock Analysis on Net

HP Inc. (NYSE:HPQ)

This company has been moved to the archive! The financial data has not been updated since August 29, 2019.

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

Microsoft Excel

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

Two-Component Disaggregation of ROE

HP Inc., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Oct 31, 2018 — = 15.39% × —
Oct 31, 2017 — = 7.67% × —
Oct 31, 2016 — = 8.60% × —
Oct 31, 2015 16.40% = 4.26% × 3.85
Oct 31, 2014 18.75% = 4.86% × 3.86
Oct 31, 2013 18.75% = 4.84% × 3.88

Based on: 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31).

Three-Component Disaggregation of ROE

HP Inc., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Oct 31, 2018 — = 9.11% × 1.69 × —
Oct 31, 2017 — = 4.85% × 1.58 × —
Oct 31, 2016 — = 5.17% × 1.66 × —
Oct 31, 2015 16.40% = 4.41% × 0.97 × 3.85
Oct 31, 2014 18.75% = 4.50% × 1.08 × 3.86
Oct 31, 2013 18.75% = 4.55% × 1.06 × 3.88

Based on: 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31).

Five-Component Disaggregation of ROE

HP Inc., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Oct 31, 2018 — = 1.77 × 0.91 × 5.69% × 1.69 × —
Oct 31, 2017 — = 0.77 × 0.91 × 6.89% × 1.58 × —
Oct 31, 2016 — = 0.70 × 0.93 × 8.01% × 1.66 × —
Oct 31, 2015 16.40% = 0.96 × 0.94 × 4.89% × 0.97 × 3.85
Oct 31, 2014 18.75% = 0.76 × 0.95 × 6.19% × 1.08 × 3.86
Oct 31, 2013 18.75% = 0.79 × 0.94 × 6.18% × 1.06 × 3.88

Based on: 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31).

Two-Component Disaggregation of ROA

HP Inc., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Oct 31, 2018 15.39% = 9.11% × 1.69
Oct 31, 2017 7.67% = 4.85% × 1.58
Oct 31, 2016 8.60% = 5.17% × 1.66
Oct 31, 2015 4.26% = 4.41% × 0.97
Oct 31, 2014 4.86% = 4.50% × 1.08
Oct 31, 2013 4.84% = 4.55% × 1.06

Based on: 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31).

The primary reason for the increase in return on assets ratio (ROA) over 2018 year is the increase in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

HP Inc., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Oct 31, 2018 15.39% = 1.77 × 0.91 × 5.69% × 1.69
Oct 31, 2017 7.67% = 0.77 × 0.91 × 6.89% × 1.58
Oct 31, 2016 8.60% = 0.70 × 0.93 × 8.01% × 1.66
Oct 31, 2015 4.26% = 0.96 × 0.94 × 4.89% × 0.97
Oct 31, 2014 4.86% = 0.76 × 0.95 × 6.19% × 1.08
Oct 31, 2013 4.84% = 0.79 × 0.94 × 6.18% × 1.06

Based on: 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31).

The primary reason for the increase in return on assets ratio (ROA) over 2018 year is the increase in effect of taxes measured by tax burden ratio.

Disaggregation of Net Profit Margin

HP Inc., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Oct 31, 2018 9.11% = 1.77 × 0.91 × 5.69%
Oct 31, 2017 4.85% = 0.77 × 0.91 × 6.89%
Oct 31, 2016 5.17% = 0.70 × 0.93 × 8.01%
Oct 31, 2015 4.41% = 0.96 × 0.94 × 4.89%
Oct 31, 2014 4.50% = 0.76 × 0.95 × 6.19%
Oct 31, 2013 4.55% = 0.79 × 0.94 × 6.18%

Based on: 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31).

The primary reason for the increase in net profit margin ratio over 2018 year is the increase in effect of taxes measured by tax burden ratio.