Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Pfizer Inc. (NYSE:PFE)

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

Beginner level

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

Two-Component Disaggregation of ROE

Pfizer Inc., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = ROA × Financial Leverage
Jun 28, 2020 22.02% = 7.96% × 2.77
Mar 29, 2020 24.28% = 9.49% × 2.56
Dec 31, 2019 25.77% = 9.72% × 2.65
Sep 29, 2019 24.91% = 9.51% × 2.62
Jun 30, 2019 21.24% = 8.10% × 2.62
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 — = — × 2.56
Jun 28, 2015 — = — × 2.40
Mar 29, 2015 — = — × 2.39

Based on: 10-Q (filing date: 2020-08-06), 10-Q (filing date: 2020-05-07), 10-K (filing date: 2020-02-27), 10-Q (filing date: 2019-11-07), 10-Q (filing date: 2019-08-08), 10-Q (filing date: 2019-05-09), 10-K (filing date: 2019-02-28), 10-Q (filing date: 2018-11-08), 10-Q (filing date: 2018-08-09), 10-Q (filing date: 2018-05-10), 10-K (filing date: 2018-02-22), 10-Q (filing date: 2017-11-09), 10-Q (filing date: 2017-08-10), 10-Q (filing date: 2017-05-11), 10-K (filing date: 2017-02-23), 10-Q (filing date: 2016-11-10), 10-Q (filing date: 2016-08-11), 10-Q (filing date: 2016-05-12), 10-K (filing date: 2016-02-29), 10-Q (filing date: 2015-11-05), 10-Q (filing date: 2015-08-06), 10-Q (filing date: 2015-05-07).

The primary reason for the decrease in return on equity ratio (ROE) over Q2 2020 is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Pfizer Inc., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Jun 28, 2020 22.02% = 28.80% × 0.28 × 2.77
Mar 29, 2020 24.28% = 31.17% × 0.30 × 2.56
Dec 31, 2019 25.77% = 31.45% × 0.31 × 2.65
Sep 29, 2019 24.91% = 30.57% × 0.31 × 2.62
Jun 30, 2019 21.24% = 23.58% × 0.34 × 2.62
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 — = — × — × 2.56
Jun 28, 2015 — = — × — × 2.40
Mar 29, 2015 — = — × — × 2.39

Based on: 10-Q (filing date: 2020-08-06), 10-Q (filing date: 2020-05-07), 10-K (filing date: 2020-02-27), 10-Q (filing date: 2019-11-07), 10-Q (filing date: 2019-08-08), 10-Q (filing date: 2019-05-09), 10-K (filing date: 2019-02-28), 10-Q (filing date: 2018-11-08), 10-Q (filing date: 2018-08-09), 10-Q (filing date: 2018-05-10), 10-K (filing date: 2018-02-22), 10-Q (filing date: 2017-11-09), 10-Q (filing date: 2017-08-10), 10-Q (filing date: 2017-05-11), 10-K (filing date: 2017-02-23), 10-Q (filing date: 2016-11-10), 10-Q (filing date: 2016-08-11), 10-Q (filing date: 2016-05-12), 10-K (filing date: 2016-02-29), 10-Q (filing date: 2015-11-05), 10-Q (filing date: 2015-08-06), 10-Q (filing date: 2015-05-07).

The primary reason for the decrease in return on equity ratio (ROE) over Q2 2020 is the decrease in efficiency measured by asset turnover ratio.

Two-Component Disaggregation of ROA

Pfizer Inc., decomposition of ROA (quarterly data)

Microsoft Excel LibreOffice Calc
ROA = Net Profit Margin × Asset Turnover
Jun 28, 2020 7.96% = 28.80% × 0.28
Mar 29, 2020 9.49% = 31.17% × 0.30
Dec 31, 2019 9.72% = 31.45% × 0.31
Sep 29, 2019 9.51% = 30.57% × 0.31
Jun 30, 2019 8.10% = 23.58% × 0.34
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 — = — × —
Jun 28, 2015 — = — × —
Mar 29, 2015 — = — × —

Based on: 10-Q (filing date: 2020-08-06), 10-Q (filing date: 2020-05-07), 10-K (filing date: 2020-02-27), 10-Q (filing date: 2019-11-07), 10-Q (filing date: 2019-08-08), 10-Q (filing date: 2019-05-09), 10-K (filing date: 2019-02-28), 10-Q (filing date: 2018-11-08), 10-Q (filing date: 2018-08-09), 10-Q (filing date: 2018-05-10), 10-K (filing date: 2018-02-22), 10-Q (filing date: 2017-11-09), 10-Q (filing date: 2017-08-10), 10-Q (filing date: 2017-05-11), 10-K (filing date: 2017-02-23), 10-Q (filing date: 2016-11-10), 10-Q (filing date: 2016-08-11), 10-Q (filing date: 2016-05-12), 10-K (filing date: 2016-02-29), 10-Q (filing date: 2015-11-05), 10-Q (filing date: 2015-08-06), 10-Q (filing date: 2015-05-07).

The primary reason for the decrease in return on assets ratio (ROA) over Q2 2020 is the decrease in asset turnover ratio.