Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.
Two-Component Disaggregation of ROE
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
The analyzed financial data reveals notable fluctuations and a gradual improvement trend over the indicated periods for the key performance metrics: Return on Assets (ROA), Financial Leverage, and Return on Equity (ROE).
- Return on Assets (ROA)
- The ROA showed significant volatility, starting with a deep negative value of -20.35% at the end of 2020. This negative trend initially continued, hitting lows reaching about -32.45% in mid-2022. From early 2023 onwards, the ROA demonstrated a gradual recovery, transitioning into positive territory by late 2023. The metric improved consistently, rising to 23.26% by early 2025, indicating enhanced asset profitability.
- Financial Leverage
- Financial leverage ratios increased from 2.65 in the first quarter of 2020 to a peak near 4.98 in late 2022, reflecting a growing dependence on debt or liabilities relative to equity. Following this peak, financial leverage gradually decreased over the subsequent quarters, reaching approximately 2.4 by the first quarter of 2025. This decline implies a reduction in leverage and perhaps a strengthening of the capital structure.
- Return on Equity (ROE)
- ROE exhibited extreme negative values through much of the early period, with the lowest points dipping to -151.07% in mid-2022. This indicates severe losses relative to shareholder equity. However, beginning in early 2023, ROE showed marked improvement, moving into positive figures by mid-2023. This positive trajectory continued significantly, culminating in a strong ROE of 55.91% by the first quarter of 2025, evidencing a substantial recovery in shareholder returns.
In summary, the data portrays an initial period of financial distress characterized by negative returns on assets and equity, along with escalating financial leverage. The subsequent years demonstrate a recovery phase with reducing leverage and increasing profitability metrics, suggesting improved operational efficiency and financial stability over time.
Three-Component Disaggregation of ROE
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Net Profit Margin
- The net profit margin exhibited significant volatility over the examined periods. Initially, it was deeply negative, reaching approximately -60.76% in late 2020. From there, a steady improvement was observed, with the margin rising gradually through 2021 and 2022, albeit with intermittent declines. By early 2023, the margin approached near breakeven, turning positive by late 2023 and maintaining upward momentum into 2025. The recent figures indicate a strong improvement, peaking above 20% by the first quarter of 2025, which suggests enhanced profitability and operational efficiency.
- Asset Turnover
- The asset turnover ratio showed an overall upward trend from early 2021 through early 2023, increasing from around 0.33 to just over 1.0. This indicates improved utilization of assets in generating revenue during this period. Subsequently, the ratio stabilized and exhibited a slight decline, fluctuating around 0.9 through to early 2025. This implies a maintained but somewhat stabilized efficiency in asset use in recent quarters.
- Financial Leverage
- Financial leverage rose sharply from early 2021 to late 2022, peaking at nearly 5.0, reflecting increased use of debt or liabilities relative to equity during this interval. Following this peak, leverage steadily decreased throughout 2023 and 2024, reaching levels close to 2.4 by early 2025. This decline suggests a strategic reduction in debt or an increase in equity, contributing to a more conservative capital structure by the end of the observed period.
- Return on Equity (ROE)
- Return on equity mirrored the volatile pattern seen in net profit margin, with a pronounced negative performance through 2020 into early 2022, including extreme negative returns below -100% at certain points. This indicates substantial losses relative to shareholder equity during this time. However, starting in mid-2022, ROE began to recover markedly, crossing into positive territory by late 2023 and continuing its ascent to exceed 50% by early 2025. The rapid improvement in ROE reflects a significant turnaround in profitability and efficient use of equity capital.
Five-Component Disaggregation of ROE
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
The financial data reveals several noteworthy trends in key performance ratios over the examined periods.
- Tax Burden
- This ratio, which reflects the proportion of earnings retained after taxes, shows a significant increase beginning around the period labeled March 31, 2023. Prior to this, data is missing; however, from early 2023 onwards, the Tax Burden ratio remains close to 1 (1.0 to 0.88), indicating lower tax expense relative to earnings. Subsequently, in the last few periods, it notably rises to above 2, suggesting unusual tax benefits or adjustments impacting profitability.
- Interest Burden
- The interest burden ratio demonstrates considerable volatility in the most recent quarters. From a sharp negative value (-0.85) in a 2023 quarter, which indicates an extraordinary interest expense or a data anomaly, it recovers to positive values ranging approximately from 0.63 to 0.92 in following quarters. This suggests improvement in managing interest expenses or a reduction in net interest costs over time.
- EBIT Margin
- The EBIT margin experiences a substantial recovery trend across the periods with data. Initially exhibiting deeply negative margins (e.g., -58.37% as one of the lowest points), it lessens its losses significantly by the end of 2023 and into 2024, moving into positive territory. The margin improves from a negative range below -27% up to approximately 14.55% by December 2024, indicating enhanced operational efficiency and profitability.
- Asset Turnover
- Asset turnover, a measure of sales generated per unit of asset, increases steadily through the earlier periods, starting modestly around 0.33 and peaking near 1.04 by early 2023. Following this peak, the ratio stabilizes slightly below 1.0, ranging from approximately 0.86 to 0.97. This pattern indicates improving utilization of assets to generate revenue, which plateaus at a high level in recent quarters.
- Financial Leverage
- Financial leverage shows a high level of fluctuation with a general declining trend over time. Initially, leverage rises from about 2.65 up to nearly 5.0 around late 2021 and early 2022, reflecting increased reliance on debt or liabilities. From then on, there is a gradual reduction back to levels around 2.38 to 2.4 by early 2025, indicating a possible deleveraging strategy or improved equity position in the capital structure.
- Return on Equity (ROE)
- ROE presents a dramatic improvement trajectory. Early periods exhibit heavy negative returns, at times exceeding -150%, signaling significant losses or negative equity returns. Starting approximately around early 2023, ROE turns positive and gradually strengthens, reaching roughly 55.91% by the latest period examined. This suggests a marked improvement in profitability and value generation for shareholders, reflecting successful financial and operational adjustments.
In summary, the data reflects a company moving from significant operational and financial challenges to gradually improved profitability and stability. The improvement in EBIT margin and ROE, alongside better asset utilization and managed leverage, indicates a positive evolution in business performance and financial health over the covered periods.
Two-Component Disaggregation of ROA
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
The financial performance across the analyzed periods exhibits notable trends in profitability and efficiency metrics.
- Net Profit Margin (%)
- The net profit margin shows a substantial improvement from a deeply negative position in early 2020. Initially, during 2020 and early 2021, the margin was significantly negative, with the lowest point around -60.76%. From mid-2021 onwards, a consistent upward trend is observable, reducing losses and moving gradually toward profitability. By the end of 2023 and through 2024, the net profit margin turns positive, reaching over 22% by the first quarter of 2025, indicating improving operational efficiency and cost management that contribute to overall profitability gains.
- Asset Turnover (ratio)
- The asset turnover ratio begins at a relatively low value in early 2020 and shows a steady increase through 2021 and 2022, peaking near 1.04 by early 2023. This increase suggests improved utilization of assets in generating revenue during these periods. However, from 2023 onwards, a mild decline in asset turnover is apparent, stabilizing close to 0.86 by early 2025. This slight decrease may indicate either slower revenue growth relative to assets or increased asset base without proportional revenue increases.
- Return on Assets (ROA) (%)
- Return on assets follows a trajectory similar to net profit margin. Early 2020 figures show deeply negative returns, with a value near -20.35%. Over the subsequent periods, ROA improves steadily, moving toward positive territory by mid-2023. By 2025, ROA reaches a noteworthy level above 23%, reflecting enhanced profitability relative to the asset base and suggesting effective management of assets to generate returns.
Overall, the data reflect a transition from a period of substantial losses and inefficiencies toward improved financial health, evidenced by rising profitability margins and returns. Asset utilization initially improves but then slightly declines in recent periods, which could be an area for further analysis to ensure sustainable growth. The marked recovery in net profit margin and ROA indicates positive momentum in operational and strategic performance.
Four-Component Disaggregation of ROA
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
The financial data reveals several key trends in the company's operational efficiency, profitability, and financial burden indicators over the analyzed quarters.
- Tax Burden
- The tax burden ratio shows data only from the quarters starting in March 2023 onward. It begins slightly above 1 and decreases moderately to 0.88 by September 2023, then rises again to 0.92 in December 2023 and March 2024. A significant increase occurs in the subsequent periods, reaching values above 2.0 by December 2024 and March 2025. This trend suggests a considerable change in tax impact or tax expense recognition in recent quarters.
- Interest Burden
- Interest burden ratios are available from mid-2023 onwards. Early in this period, a negative value (-0.85) is observed, indicative of unusual financial expenses or restructuring impacts. Subsequently, the ratio stabilizes and improves steadily, moving from 0.63 in June 2023 to 0.92 by March 2025, reflecting an improving ability to cover interest expenses from operational earnings.
- EBIT Margin (%)
- The EBIT margin displays a marked improvement trend over the measured timeframe. The earliest recorded margin is deeply negative, nearing -58% in the first recorded quarter. This loss margin diminishes consistently with fluctuations until turning positive around mid-2023 at 0.94%. Afterwards, the margin improves further to reach approximately 14.55% by the last quarter reported. This trend denotes a transition from operating losses to growing operating profitability.
- Asset Turnover (ratio)
- Asset turnover steadily increases from very low values in early 2020, beginning around 0.33 and climbing gradually through 2021 and 2022. The peak is close to 1.04 in March 2023 showing increased efficiency in generating revenue from assets. Following this peak, turnover slightly declines but remains stable near 0.86 towards the end of the dataset. This pattern suggests improvements in asset utilization that level off after initial rapid gains.
- Return on Assets (ROA, %)
- ROA mirrors the EBIT margin’s improvement, starting at a deep negative level of about -20% in the early measured periods and showcasing a deteriorating trend that worsens to nearly -32.45% in late 2021. From early 2022 onwards, ROA starts recovering, moving into positive territory by mid-2023. The most recent values show significant advancement, reaching more than 23% by early 2025. This positive trajectory indicates a substantial enhancement in the company's overall profitability relative to its asset base.
Overall, the financial indicators denote a company in recovery and growth, improving from operational and profitability challenges reflected by negative margins and returns in earlier years to stronger financial performance in the later data points. Asset utilization improved initially before stabilizing, while tax and interest burdens reflect recent shifts potentially connected to changes in capital structure or tax strategies.
Disaggregation of Net Profit Margin
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Tax Burden
- The tax burden ratio appears only from the period starting March 31, 2024. Initially, it stands at 1.00 and slightly decreases to 0.90 and 0.88 in the following two quarters, before stabilizing around 0.92 for the next two quarters. Notably, it rises significantly to 2.41 by March 31, 2025 and then slightly declines to 2.02 by June 30, 2025. This indicates increasing tax expenses relative to earnings in the latest periods evaluated.
- Interest Burden
- Data for interest burden begins from June 30, 2023. The ratio shows considerable volatility, starting with a negative value (-0.85), suggesting net interest income or accounting anomalies. Subsequently, the ratio improves, reaching 0.63, 0.77, and then peaking at 0.92 by December 31, 2024, and remains steady at 0.92 by June 30, 2025. This reflects an overall improvement in interest-related expenses or income effects over time.
- EBIT Margin
- The EBIT margin exhibits a marked recovery trend across the periods measured. Starting from deeply negative values such as -58.37% in December 31, 2020 and -30.11% in March 31, 2021, there is a gradual improvement, with intermittent fluctuations. The margin approaches near break-even by March 31, 2023 with -7.85%, then turns positive and strengthens progressively, reaching 12.73% by March 31, 2025. This pattern indicates an improving operational profitability over the analyzed timeframe.
- Net Profit Margin
- Net profit margin trends closely parallel those of EBIT margin but generally maintain lower values. Initially severely negative, dropping as low as -60.76% in December 31, 2020 and maintaining significant losses through 2021 and 2022, the margin starts to improve gradually from 2023 onward. By March 31, 2023, the margin is still negative at -9.95% but moves into positive territory by June 30, 2023, then progressively increases to 27.07% by June 30, 2025. This reflects reduced net losses transitioning to profitability, highlighting improved overall financial performance including after non-operating expenses and taxes.