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

Pfizer Inc., decomposition of ROE (quarterly data)

	ROE	=	ROA	×	Leverage

Mar 31, 2019	19.52%	=	7.38%	×	2.64
Dec 31, 2018	17.59%	=	7.00%	×	2.51
Sep 30, 2018	33.40%	=	14.19%	×	2.35
Jul 1, 2018	32.31%	=	13.67%	×	2.36
Apr 1, 2018	29.72%	=	13.21%	×	2.25
Dec 31, 2017	29.88%	=	12.40%	×	2.41
Oct 1, 2017	16.14%	=	5.70%	×	2.83
Jul 2, 2017	14.26%	=	4.94%	×	2.89
Apr 2, 2017	12.49%	=	4.32%	×	2.89
Dec 31, 2016	12.12%	=	4.20%	×	2.88
Oct 2, 2016	9.90%	=	3.51%	×	2.82
Jul 3, 2016	11.22%	=	4.13%	×	2.72
Apr 3, 2016	12.09%	=	4.68%	×	2.58
Dec 31, 2015	10.75%	=	4.16%	×	2.59
Sep 27, 2015	12.51%	=	4.89%	×	2.56
Jun 28, 2015	13.30%	=	5.53%	×	2.40
Mar 29, 2015	13.64%	=	5.72%	×	2.39
Dec 31, 2014	12.81%	=	5.40%	×	2.37
Sep 28, 2014	—	=	—	×	2.20
Jun 29, 2014	—	=	—	×	2.25
Mar 30, 2014	—	=	—	×	2.21

The primary reason for the increase in Return on Equity (ROE) over Q1 2019 is the increase in profitability measured by Return on Assets (ROA).

Pfizer Inc., decomposition of ROE (quarterly data)

	ROE	=	Net Profit Margin	×	Asset Turnover	×	Leverage

Mar 31, 2019	19.52%	=	21.31%	×	0.35	×	2.64
Dec 31, 2018	17.59%	=	20.79%	×	0.34	×	2.51
Sep 30, 2018	33.40%	=	44.63%	×	0.32	×	2.35
Jul 1, 2018	32.31%	=	42.35%	×	0.32	×	2.36
Apr 1, 2018	29.72%	=	41.29%	×	0.32	×	2.25
Dec 31, 2017	29.88%	=	40.55%	×	0.31	×	2.41
Oct 1, 2017	16.14%	=	18.69%	×	0.30	×	2.83
Jul 2, 2017	14.26%	=	15.90%	×	0.31	×	2.89
Apr 2, 2017	12.49%	=	13.88%	×	0.31	×	2.89
Dec 31, 2016	12.12%	=	13.66%	×	0.31	×	2.88
Oct 2, 2016	9.90%	=	11.77%	×	0.30	×	2.82
Jul 3, 2016	11.22%	=	13.47%	×	0.31	×	2.72
Apr 3, 2016	12.09%	=	14.95%	×	0.31	×	2.58
Dec 31, 2015	10.75%	=	14.25%	×	0.29	×	2.59
Sep 27, 2015	12.51%	=	17.45%	×	0.28	×	2.56
Jun 28, 2015	13.30%	=	18.46%	×	0.30	×	2.40
Mar 29, 2015	13.64%	=	18.69%	×	0.31	×	2.39
Dec 31, 2014	12.81%	=	18.42%	×	0.29	×	2.37
Sep 28, 2014	—	=	—	×	—	×	2.20
Jun 29, 2014	—	=	—	×	—	×	2.25
Mar 30, 2014	—	=	—	×	—	×	2.21

The primary reason for the increase in Return on Equity (ROE) over Q1 2019 is the increase in Financial Leverage.

Pfizer Inc., decomposition of ROA (quarterly data)

	ROA	=	Net Profit Margin	×	Asset Turnover

Mar 31, 2019	7.38%	=	21.31%	×	0.35
Dec 31, 2018	7.00%	=	20.79%	×	0.34
Sep 30, 2018	14.19%	=	44.63%	×	0.32
Jul 1, 2018	13.67%	=	42.35%	×	0.32
Apr 1, 2018	13.21%	=	41.29%	×	0.32
Dec 31, 2017	12.40%	=	40.55%	×	0.31
Oct 1, 2017	5.70%	=	18.69%	×	0.30
Jul 2, 2017	4.94%	=	15.90%	×	0.31
Apr 2, 2017	4.32%	=	13.88%	×	0.31
Dec 31, 2016	4.20%	=	13.66%	×	0.31
Oct 2, 2016	3.51%	=	11.77%	×	0.30
Jul 3, 2016	4.13%	=	13.47%	×	0.31
Apr 3, 2016	4.68%	=	14.95%	×	0.31
Dec 31, 2015	4.16%	=	14.25%	×	0.29
Sep 27, 2015	4.89%	=	17.45%	×	0.28
Jun 28, 2015	5.53%	=	18.46%	×	0.30
Mar 29, 2015	5.72%	=	18.69%	×	0.31
Dec 31, 2014	5.40%	=	18.42%	×	0.29
Sep 28, 2014	—	=	—	×	—
Jun 29, 2014	—	=	—	×	—
Mar 30, 2014	—	=	—	×	—

The primary reason for the increase in Return on Assets (ROA) over Q1 2019 is the increase in Asset Turnover.

Pfizer Inc. (PFE)

DuPont Analysis: Decomposition of ROE
Quarterly Data