United Technologies Corp. (UTX)


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

Low level of difficulty


Two-Component Disaggregation of ROE

United Technologies Corp., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = ROA × Financial Leverage
Sep 30, 2019 12.55% = 3.65% × 3.44
Jun 30, 2019 12.69% = 3.72% × 3.41
Mar 31, 2019 13.38% = 3.87% × 3.46
Dec 31, 2018 13.70% = 3.93% × 3.49
Sep 30, 2018 15.51% = 4.33% × 3.58
Jun 30, 2018 16.17% = 4.99% × 3.24
Mar 31, 2018 14.62% = 4.52% × 3.24
Dec 31, 2017 15.37% = 4.70% × 3.27
Sep 30, 2017 17.30% = 5.36% × 3.22
Jun 30, 2017 18.70% = 5.61% × 3.33
Mar 31, 2017 19.05% = 5.82% × 3.28
Dec 31, 2016 18.33% = 5.64% × 3.25
Sep 30, 2016 25.08% = 8.13% × 3.09
Jun 30, 2016 24.76% = 8.05% × 3.08
Mar 31, 2016 25.98% = 8.32% × 3.12
Dec 31, 2015 27.81% = 8.70% × 3.20
Sep 30, 2015 19.01% = 6.30% × 3.02
Jun 30, 2015 20.72% = 6.79% × 3.05
Mar 31, 2015 22.45% = 7.04% × 3.19
Dec 31, 2014 19.93% = 6.81% × 2.92
Sep 30, 2014 = × 2.70
Jun 30, 2014 = × 2.73
Mar 31, 2014 = × 2.82

Based on: 10-Q (filing date: 2019-10-25), 10-Q (filing date: 2019-07-26), 10-Q (filing date: 2019-04-26), 10-K (filing date: 2019-02-07), 10-Q (filing date: 2018-10-26), 10-Q (filing date: 2018-07-27), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-09), 10-Q (filing date: 2017-10-27), 10-Q (filing date: 2017-07-28), 10-Q (filing date: 2017-04-28), 10-K (filing date: 2017-02-09), 10-Q (filing date: 2016-10-27), 10-Q (filing date: 2016-07-29), 10-Q (filing date: 2016-04-29), 10-K (filing date: 2016-02-11), 10-Q (filing date: 2015-10-23), 10-Q (filing date: 2015-07-24), 10-Q (filing date: 2015-04-24), 10-K (filing date: 2015-02-05), 10-Q (filing date: 2014-10-24), 10-Q (filing date: 2014-07-25), 10-Q (filing date: 2014-04-25).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2019 is the decrease in profitability measured by return on assets ratio (ROA).


Three-Component Disaggregation of ROE

United Technologies Corp., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Sep 30, 2019 12.55% = 6.73% × 0.54 × 3.44
Jun 30, 2019 12.69% = 7.13% × 0.52 × 3.41
Mar 31, 2019 13.38% = 7.64% × 0.51 × 3.46
Dec 31, 2018 13.70% = 7.92% × 0.50 × 3.49
Sep 30, 2018 15.51% = 7.76% × 0.56 × 3.58
Jun 30, 2018 16.17% = 8.09% × 0.62 × 3.24
Mar 31, 2018 14.62% = 7.28% × 0.62 × 3.24
Dec 31, 2017 15.37% = 7.61% × 0.62 × 3.27
Sep 30, 2017 17.30% = 8.79% × 0.61 × 3.22
Jun 30, 2017 18.70% = 9.15% × 0.61 × 3.33
Mar 31, 2017 19.05% = 9.11% × 0.64 × 3.28
Dec 31, 2016 18.33% = 8.83% × 0.64 × 3.25
Sep 30, 2016 25.08% = 12.87% × 0.63 × 3.09
Jun 30, 2016 24.76% = 12.79% × 0.63 × 3.08
Mar 31, 2016 25.98% = 13.12% × 0.63 × 3.12
Dec 31, 2015 27.81% = 13.56% × 0.64 × 3.20
Sep 30, 2015 19.01% = 9.87% × 0.64 × 3.02
Jun 30, 2015 20.72% = 10.29% × 0.66 × 3.05
Mar 31, 2015 22.45% = 10.10% × 0.70 × 3.19
Dec 31, 2014 19.93% = 9.55% × 0.71 × 2.92
Sep 30, 2014 = × × 2.70
Jun 30, 2014 = × × 2.73
Mar 31, 2014 = × × 2.82

Based on: 10-Q (filing date: 2019-10-25), 10-Q (filing date: 2019-07-26), 10-Q (filing date: 2019-04-26), 10-K (filing date: 2019-02-07), 10-Q (filing date: 2018-10-26), 10-Q (filing date: 2018-07-27), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-09), 10-Q (filing date: 2017-10-27), 10-Q (filing date: 2017-07-28), 10-Q (filing date: 2017-04-28), 10-K (filing date: 2017-02-09), 10-Q (filing date: 2016-10-27), 10-Q (filing date: 2016-07-29), 10-Q (filing date: 2016-04-29), 10-K (filing date: 2016-02-11), 10-Q (filing date: 2015-10-23), 10-Q (filing date: 2015-07-24), 10-Q (filing date: 2015-04-24), 10-K (filing date: 2015-02-05), 10-Q (filing date: 2014-10-24), 10-Q (filing date: 2014-07-25), 10-Q (filing date: 2014-04-25).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2019 is the decrease in profitability measured by net profit margin ratio.


Two-Component Disaggregation of ROA

United Technologies Corp., decomposition of ROA (quarterly data)

Microsoft Excel LibreOffice Calc
ROA = Net Profit Margin × Asset Turnover
Sep 30, 2019 3.65% = 6.73% × 0.54
Jun 30, 2019 3.72% = 7.13% × 0.52
Mar 31, 2019 3.87% = 7.64% × 0.51
Dec 31, 2018 3.93% = 7.92% × 0.50
Sep 30, 2018 4.33% = 7.76% × 0.56
Jun 30, 2018 4.99% = 8.09% × 0.62
Mar 31, 2018 4.52% = 7.28% × 0.62
Dec 31, 2017 4.70% = 7.61% × 0.62
Sep 30, 2017 5.36% = 8.79% × 0.61
Jun 30, 2017 5.61% = 9.15% × 0.61
Mar 31, 2017 5.82% = 9.11% × 0.64
Dec 31, 2016 5.64% = 8.83% × 0.64
Sep 30, 2016 8.13% = 12.87% × 0.63
Jun 30, 2016 8.05% = 12.79% × 0.63
Mar 31, 2016 8.32% = 13.12% × 0.63
Dec 31, 2015 8.70% = 13.56% × 0.64
Sep 30, 2015 6.30% = 9.87% × 0.64
Jun 30, 2015 6.79% = 10.29% × 0.66
Mar 31, 2015 7.04% = 10.10% × 0.70
Dec 31, 2014 6.81% = 9.55% × 0.71
Sep 30, 2014 = ×
Jun 30, 2014 = ×
Mar 31, 2014 = ×

Based on: 10-Q (filing date: 2019-10-25), 10-Q (filing date: 2019-07-26), 10-Q (filing date: 2019-04-26), 10-K (filing date: 2019-02-07), 10-Q (filing date: 2018-10-26), 10-Q (filing date: 2018-07-27), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-09), 10-Q (filing date: 2017-10-27), 10-Q (filing date: 2017-07-28), 10-Q (filing date: 2017-04-28), 10-K (filing date: 2017-02-09), 10-Q (filing date: 2016-10-27), 10-Q (filing date: 2016-07-29), 10-Q (filing date: 2016-04-29), 10-K (filing date: 2016-02-11), 10-Q (filing date: 2015-10-23), 10-Q (filing date: 2015-07-24), 10-Q (filing date: 2015-04-24), 10-K (filing date: 2015-02-05), 10-Q (filing date: 2014-10-24), 10-Q (filing date: 2014-07-25), 10-Q (filing date: 2014-04-25).

The primary reason for the decrease in return on assets ratio (ROA) over Q3 2019 is the decrease in profitability measured by net profit margin ratio.