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.
Paying user area
Try for free
Home Depot Inc. pages available for free this week:
- Statement of Comprehensive Income
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value (EV)
- Return on Equity (ROE) since 2005
- Price to Earnings (P/E) since 2005
- Aggregate Accruals
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Home Depot Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Two-Component Disaggregation of ROE
Home Depot Inc., decomposition of ROE
| ROE | = | ROA | × | Financial Leverage | |
|---|---|---|---|---|---|
| Feb 2, 2025 | = | × | |||
| Jan 28, 2024 | = | × | |||
| Jan 29, 2023 | = | × | |||
| Jan 30, 2022 | = | × | |||
| Jan 31, 2021 | = | × | |||
| Feb 2, 2020 | = | × |
Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).
The primary reason for the decrease in return on equity ratio (ROE) over 2025 year is the decrease in financial leverage ratio.
Three-Component Disaggregation of ROE
Home Depot Inc., decomposition of ROE
| ROE | = | Net Profit Margin | × | Asset Turnover | × | Financial Leverage | |
|---|---|---|---|---|---|---|---|
| Feb 2, 2025 | = | × | × | ||||
| Jan 28, 2024 | = | × | × | ||||
| Jan 29, 2023 | = | × | × | ||||
| Jan 30, 2022 | = | × | × | ||||
| Jan 31, 2021 | = | × | × | ||||
| Feb 2, 2020 | = | × | × |
Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).
The primary reason for the decrease in return on equity ratio (ROE) over 2025 year is the decrease in financial leverage ratio.
Five-Component Disaggregation of ROE
Home Depot Inc., decomposition of ROE
Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).
The primary reason for the decrease in return on equity ratio (ROE) over 2025 year is the decrease in financial leverage ratio.
Two-Component Disaggregation of ROA
Home Depot Inc., decomposition of ROA
| ROA | = | Net Profit Margin | × | Asset Turnover | |
|---|---|---|---|---|---|
| Feb 2, 2025 | = | × | |||
| Jan 28, 2024 | = | × | |||
| Jan 29, 2023 | = | × | |||
| Jan 30, 2022 | = | × | |||
| Jan 31, 2021 | = | × | |||
| Feb 2, 2020 | = | × |
Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).
The primary reason for the decrease in return on assets ratio (ROA) over 2025 year is the decrease in asset turnover ratio.
Four-Component Disaggregation of ROA
Home Depot Inc., decomposition of ROA
| ROA | = | Tax Burden | × | Interest Burden | × | EBIT Margin | × | Asset Turnover | |
|---|---|---|---|---|---|---|---|---|---|
| Feb 2, 2025 | = | × | × | × | |||||
| Jan 28, 2024 | = | × | × | × | |||||
| Jan 29, 2023 | = | × | × | × | |||||
| Jan 30, 2022 | = | × | × | × | |||||
| Jan 31, 2021 | = | × | × | × | |||||
| Feb 2, 2020 | = | × | × | × |
Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).
The primary reason for the decrease in return on assets ratio (ROA) over 2025 year is the decrease in efficiency measured by asset turnover ratio.
Disaggregation of Net Profit Margin
Home Depot Inc., decomposition of net profit margin ratio
| Net Profit Margin | = | Tax Burden | × | Interest Burden | × | EBIT Margin | |
|---|---|---|---|---|---|---|---|
| Feb 2, 2025 | = | × | × | ||||
| Jan 28, 2024 | = | × | × | ||||
| Jan 29, 2023 | = | × | × | ||||
| Jan 30, 2022 | = | × | × | ||||
| Jan 31, 2021 | = | × | × | ||||
| Feb 2, 2020 | = | × | × |
Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).
The primary reason for the decrease in net profit margin ratio over 2025 year is the decrease in operating profitability measured by EBIT margin ratio.