Microsoft Excel LibreOffice Calc

Pfizer Inc. (PFE)


DuPont Analysis: Decomposition of ROE

Difficulty: Beginner


Two-Component Disaggregation of ROE

Pfizer Inc., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = ROA × Leverage
Dec 31, 2018 17.59% = 7.00% × 2.51
Dec 31, 2017 29.88% = 12.40% × 2.41
Dec 31, 2016 12.12% = 4.20% × 2.88
Dec 31, 2015 10.75% = 4.16% × 2.59
Dec 31, 2014 12.81% = 5.40% × 2.37

Based on: 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-29), 10-K (filing date: 2015-02-27).

The primary reason for the decrease in Return on Equity (ROE) over 2018 year is the decrease in profitability measured by Return on Assets (ROA).


Three-Component Disaggregation of ROE

Pfizer Inc., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = Net Profit Margin × Asset Turnover × Leverage
Dec 31, 2018 17.59% = 20.79% × 0.34 × 2.51
Dec 31, 2017 29.88% = 40.55% × 0.31 × 2.41
Dec 31, 2016 12.12% = 13.66% × 0.31 × 2.88
Dec 31, 2015 10.75% = 14.25% × 0.29 × 2.59
Dec 31, 2014 12.81% = 18.42% × 0.29 × 2.37

Based on: 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-29), 10-K (filing date: 2015-02-27).

The primary reason for the decrease in Return on Equity (ROE) over 2018 year is the decrease in profitability measured by Net Profit Margin.


Five-Component Disaggregation of ROE

Pfizer Inc., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Leverage
Dec 31, 2018 17.59% = 0.94 × 0.90 × 24.56% × 0.34 × 2.51
Dec 31, 2017 29.88% = 1.74 × 0.91 × 25.75% × 0.31 × 2.41
Dec 31, 2016 12.12% = 0.87 × 0.88 × 18.03% × 0.31 × 2.88
Dec 31, 2015 10.75% = 0.78 × 0.88 × 20.78% × 0.29 × 2.59
Dec 31, 2014 12.81% = 0.75 × 0.90 × 27.45% × 0.29 × 2.37

Based on: 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-29), 10-K (filing date: 2015-02-27).

The primary reason for the decrease in Return on Equity (ROE) over 2018 year is the decrease in effect of taxes measured by Tax Burden.


Two-Way Decomposition of ROA

Pfizer Inc., decomposition of ROA

Microsoft Excel LibreOffice Calc
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2018 7.00% = 20.79% × 0.34
Dec 31, 2017 12.40% = 40.55% × 0.31
Dec 31, 2016 4.20% = 13.66% × 0.31
Dec 31, 2015 4.16% = 14.25% × 0.29
Dec 31, 2014 5.40% = 18.42% × 0.29

Based on: 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-29), 10-K (filing date: 2015-02-27).

The primary reason for the decrease in Return on Assets (ROA) over 2018 year is the decrease in profitability measured by Net Profit Margin.


Four-Way Decomposition of ROA

Pfizer Inc., decomposition of ROA

Microsoft Excel LibreOffice Calc
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2018 7.00% = 0.94 × 0.90 × 24.56% × 0.34
Dec 31, 2017 12.40% = 1.74 × 0.91 × 25.75% × 0.31
Dec 31, 2016 4.20% = 0.87 × 0.88 × 18.03% × 0.31
Dec 31, 2015 4.16% = 0.78 × 0.88 × 20.78% × 0.29
Dec 31, 2014 5.40% = 0.75 × 0.90 × 27.45% × 0.29

Based on: 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-29), 10-K (filing date: 2015-02-27).

The primary reason for the decrease in Return on Assets (ROA) over 2018 year is the decrease in effect of taxes measured by Tax Burden.


Decomposition of Net Profit Margin

Pfizer Inc., decomposition of Net Profit Margin

Microsoft Excel LibreOffice Calc
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2018 20.79% = 0.94 × 0.90 × 24.56%
Dec 31, 2017 40.55% = 1.74 × 0.91 × 25.75%
Dec 31, 2016 13.66% = 0.87 × 0.88 × 18.03%
Dec 31, 2015 14.25% = 0.78 × 0.88 × 20.78%
Dec 31, 2014 18.42% = 0.75 × 0.90 × 27.45%

Based on: 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-29), 10-K (filing date: 2015-02-27).

The primary reason for the decrease in Net Profit Margin over 2018 year is the decrease in effect of taxes measured by Tax Burden.