Stock Analysis on Net
Stock Analysis on Net

Monsanto Co. (NYSE:MON)

This company has been moved to the archive! The financial data has not been updated since April 5, 2018.

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

Monsanto Co., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Aug 31, 2017 35.10% = 10.59% × 3.31
Aug 31, 2016 29.47% = 6.77% × 4.35
Aug 31, 2015 33.10% = 10.56% × 3.14
Aug 31, 2014 34.79% = 12.47% × 2.79
Aug 31, 2013 19.76% = 12.01% × 1.65
Aug 31, 2012 17.28% = 10.11% × 1.71

Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).

The primary reason for the increase in return on equity ratio (ROE) over 2017 year is the increase in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Monsanto Co., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Aug 31, 2017 35.10% = 15.44% × 0.69 × 3.31
Aug 31, 2016 29.47% = 9.89% × 0.68 × 4.35
Aug 31, 2015 33.10% = 15.43% × 0.68 × 3.14
Aug 31, 2014 34.79% = 17.28% × 0.72 × 2.79
Aug 31, 2013 19.76% = 16.70% × 0.72 × 1.65
Aug 31, 2012 17.28% = 15.14% × 0.67 × 1.71

Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).

The primary reason for the increase in return on equity ratio (ROE) over 2017 year is the increase in profitability measured by net profit margin ratio.

Five-Component Disaggregation of ROE

Monsanto Co., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Aug 31, 2017 35.10% = 0.78 × 0.86 × 22.80% × 0.69 × 3.31
Aug 31, 2016 29.47% = 0.66 × 0.82 × 18.27% × 0.68 × 4.35
Aug 31, 2015 33.10% = 0.73 × 0.88 × 24.07% × 0.68 × 3.14
Aug 31, 2014 34.79% = 0.72 × 0.94 × 25.64% × 0.72 × 2.79
Aug 31, 2013 19.76% = 0.73 × 0.95 × 24.02% × 0.72 × 1.65
Aug 31, 2012 17.28% = 0.69 × 0.94 × 23.23% × 0.67 × 1.71

Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).

The primary reason for the increase in return on equity ratio (ROE) over 2017 year is the increase in operating profitability measured by EBIT margin ratio.

Two-Component Disaggregation of ROA

Monsanto Co., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Aug 31, 2017 10.59% = 15.44% × 0.69
Aug 31, 2016 6.77% = 9.89% × 0.68
Aug 31, 2015 10.56% = 15.43% × 0.68
Aug 31, 2014 12.47% = 17.28% × 0.72
Aug 31, 2013 12.01% = 16.70% × 0.72
Aug 31, 2012 10.11% = 15.14% × 0.67

Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).

The primary reason for the increase in return on assets ratio (ROA) over 2017 year is the increase in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

Monsanto Co., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Aug 31, 2017 10.59% = 0.78 × 0.86 × 22.80% × 0.69
Aug 31, 2016 6.77% = 0.66 × 0.82 × 18.27% × 0.68
Aug 31, 2015 10.56% = 0.73 × 0.88 × 24.07% × 0.68
Aug 31, 2014 12.47% = 0.72 × 0.94 × 25.64% × 0.72
Aug 31, 2013 12.01% = 0.73 × 0.95 × 24.02% × 0.72
Aug 31, 2012 10.11% = 0.69 × 0.94 × 23.23% × 0.67

Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).

The primary reason for the increase in return on assets ratio (ROA) over 2017 year is the increase in operating profitability measured by EBIT margin ratio.

Disaggregation of Net Profit Margin

Monsanto Co., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Aug 31, 2017 15.44% = 0.78 × 0.86 × 22.80%
Aug 31, 2016 9.89% = 0.66 × 0.82 × 18.27%
Aug 31, 2015 15.43% = 0.73 × 0.88 × 24.07%
Aug 31, 2014 17.28% = 0.72 × 0.94 × 25.64%
Aug 31, 2013 16.70% = 0.73 × 0.95 × 24.02%
Aug 31, 2012 15.14% = 0.69 × 0.94 × 23.23%

Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).

The primary reason for the increase in net profit margin ratio over 2017 year is the increase in operating profitability measured by EBIT margin ratio.