DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data
Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- Common Stock Valuation Ratios
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Equity (ROE) since 2005
- Price to Earnings (P/E) since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Sales (P/S) since 2005
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Two-Component Disaggregation of ROE
UnitedHealth Group Inc., decomposition of ROE (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 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).
- Return on Assets (ROA)
- The Return on Assets demonstrated fluctuations over the observed periods. Initially, ROA exhibited a moderate decline from 8.23% at the end of Q1 2021 to around 7.24% by Q3 2021, followed by a rebound that peaked above 8% in Q4 2021. This was succeeded by a relatively stable period with minor variations around 7.3% to 8.2% through the end of 2023. However, starting from early 2024, a noticeable downward trend occurred, dropping from 5.4% in Q1 2024 to approximately 4.78% in Q3 2024, with a slight recovery by the end of the year. The ROA showed another increase into early 2025 but declined again towards Q3 2025, ending below 6%. Overall, the ROA exhibited cyclicality with a recent trend of weakening asset efficiency in the latter periods.
- Financial Leverage
- Financial leverage ratios remained relatively stable with mild upward movements over the full timeline. Starting near 3.09 in Q1 2021, leverage saw small fluctuations mostly ranging between 3.0 and 3.4 until mid-2023. A gradual increase followed, reaching above 3.2 in the last few quarters analyzed, peaking near 3.29 by Q3 2025. This suggests a steady use of debt relative to equity without significant volatility, indicating consistent capital structure management.
- Return on Equity (ROE)
- ROE presents a trend that loosely follows the movements in ROA and leverage. Initially strong at 25.42% in Q1 2021, it dipped to around 21% by mid-2021, but then rallied to stabilize mostly between 23% and 26% for the next two years into late 2023. Starting in early 2024, a marked decline occurred with ROE dropping substantially to approximately 15% through Q3 2024, before improving moderately towards the end of 2024. The first half of 2025 saw ROE rebound close to 23%, yet it again declined reaching about 18% by Q3 2025. This pattern reflects a decline in profitability to shareholders during 2024, followed by partial recovery and subsequent moderation.
- Summary Insights
- The company demonstrated generally stable financial leverage, indicating controlled indebtedness relative to equity. Profitability measures, including ROA and ROE, showed significant variability with notable declines beginning in early 2024. These profitability declines suggest challenges in asset utilization and equity returns during that period, partially alleviated by the end of 2024 and into early 2025 but not returning to earlier peak levels. The trends point toward a period of reduced efficiency and profitability in recent quarters, despite maintaining a consistent capital structure.
Three-Component Disaggregation of ROE
UnitedHealth Group Inc., decomposition of ROE (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 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).
- Net Profit Margin
- The net profit margin showed moderate fluctuations over the observed periods. It started near 6.46% in March 2021 and generally maintained a level close to 6% until the end of 2023. From early 2024, there was a notable decline reaching approximately 3.65% by December 2024, followed by some recovery to about 5.46% in March 2025, but it declined again towards 4.09% by September 2025. This pattern suggests periods of reduced profitability margins in the later periods with some intermittent improvement.
- Asset Turnover
- The asset turnover ratio remained relatively stable throughout the timeline, fluctuating narrowly between 1.18 and 1.36. Initially, it was around 1.27 to 1.34, showing slight improvements during 2023 and early 2024. The ratio generally indicates consistent efficiency in using assets to generate revenue, with minor variations that do not signify any significant changes in operational efficiency over time.
- Financial Leverage
- Financial leverage displayed a gradual increasing trend. It began near 3.09 in early 2021 and rose through the periods, reaching values above 3.3 in mid-2023, then fluctuated slightly but generally remained elevated, breaching 3.2 towards the end of the timeline and reaching up to 3.29 by September 2025. This suggests a gradual increase in the use of debt or liabilities to finance assets.
- Return on Equity (ROE)
- The return on equity exhibited variability aligned partly with the trends observed in net profit margin and financial leverage. Starting at 25.42% in March 2021, ROE declined through 2023 and early 2024, dropping to around 15.14% in September 2024. A recovery is observed in early 2025 reaching above 23%, before declining again towards 18.36% by September 2025. These fluctuations reflect changes in profitability and leverage, indicating varying returns to shareholders through the periods, with notable dips in mid-2024 and partial recoveries afterward.
Five-Component Disaggregation of ROE
UnitedHealth Group Inc., decomposition of ROE (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 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).
- Tax Burden
- The tax burden ratio remained relatively stable around 0.78 to 0.79 between 2021 and early 2023, indicating a consistent portion of earnings retained after tax. A noticeable decline occurred from 0.79 in late 2022 to approximately 0.73 during the 2024 period, followed by an increase reaching above 0.80 in 2025, suggesting fluctuations in effective tax rates over time.
- Interest Burden
- The interest burden ratio showed a gradual downward trend from about 0.93 in early 2021 to roughly 0.90 by the end of 2022, implying a slight increase in interest expenses or financial costs relative to earnings before interest and taxes. This decreasing trend continued into 2024, reaching lows near 0.83, with mild recovery towards 0.86-0.87 in 2025, indicating varying interest expense pressures.
- EBIT Margin
- Operating profitability, as measured by EBIT margin, started at a high of 9.09% in Q1 2021 but experienced a decline through 2024, reaching around 5.9%. This is indicative of compression in operating efficiency or increasing costs. There was a partial improvement in 2025, where EBIT margin recovered to around 7.7% before declining again to near 5.9% by Q3 2025, reflecting volatility in margin performance.
- Asset Turnover
- Asset efficiency hovered between 1.27 and 1.34 from 2021 through 2023, showing steady utilization of assets to generate revenue. In 2024 and 2025, the ratio increased slightly, reaching around 1.35 in late 2025, which suggests a modest enhancement in asset utilization over the longer term.
- Financial Leverage
- Financial leverage remained generally elevated throughout the period, fluctuating around 3.0 to 3.3. It decreased from about 3.09 in early 2021 to a low near 2.96 by the end of 2021, then increased to above 3.3 by early 2023. Subsequent fluctuations between 3.08 and 3.29 were observed through 2024 and 2025, indicating consistent use of debt or equity financing to amplify returns.
- Return on Equity (ROE)
- ROE demonstrated significant fluctuation, starting at a peak of 25.42% in Q1 2021 and decreasing sharply to around 15% between 2023 and 2024. This decline corresponds with the falling EBIT margin and interest burden trends. ROE partially recovered in early 2025 to levels exceeding 22% but decreased again to about 18% by Q3 2025. The variation in ROE aligns with changes in profitability, leverage, and operational efficiency over the four-year span.
Two-Component Disaggregation of ROA
UnitedHealth Group Inc., decomposition of ROA (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 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).
- Net Profit Margin
- The net profit margin shows notable fluctuations over the observed periods. Beginning at 6.46% in the first quarter of 2021, it dips to a low of 3.65% by the end of 2024, indicating a weakening in profitability relative to revenue. Some recovery is noted in 2025, with the margin rising to 5.46% by the first quarter before slightly declining again. This suggests periods of pressure on profit margins, possibly due to cost increases or pricing challenges, followed by partial rebounds.
- Asset Turnover
- The asset turnover ratio remains relatively stable, fluctuating mildly around the 1.3 mark. Starting at 1.27 in early 2021, it experiences slight decreases and increases but generally maintains a range between 1.18 and 1.36. This stability reflects consistent efficiency in generating sales from assets, with no significant deterioration or improvement in asset utilization observed over the periods.
- Return on Assets (ROA)
- The return on assets mirrors the overall trend observed in profit margins but with somewhat more pronounced variation. Starting strong at 8.23% in the first quarter of 2021, ROA decreases to a trough of 4.78% by the third quarter of 2024, indicating a reduced effectiveness in using assets to generate profits. A partial recovery is apparent in 2025, with ROA rebounding to 7.14% before dropping slightly again. The decline and subsequent improvement patterns may reflect operational or market conditions impacting asset productivity and profitability.
- Overall Insights
- The financial ratios suggest that while asset use remains consistently efficient, profitability metrics exhibit volatility, characterized by a general decline through 2024 followed by some recovery in 2025. This pattern may suggest external pressures such as increased costs or competitive factors affecting profit margins and returns, without a parallel decline in asset utilization. The timing of these changes points to periods of financial stress and adjustment, with potential operational or strategic responses leading to partial recovery in profitability indicators.
Four-Component Disaggregation of ROA
UnitedHealth Group Inc., decomposition of ROA (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 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).
- Tax Burden
- The tax burden ratio demonstrated relative stability during the initial periods, fluctuating slightly around 0.78 to 0.79 from March 2021 through December 2023. However, beginning in March 2024, a noticeable decline occurred, reaching approximately 0.73 to 0.75 in the first three quarters of 2024. This was followed by an increase towards the latter periods, rising above 0.80 by mid-2025. The pattern indicates some variability, with a dip in mid-2024 and a recovery thereafter.
- Interest Burden
- The interest burden ratio showed a mild declining trend over the assessed periods. Starting close to 0.93 in early 2021, it gradually decreased to about 0.90 by late 2023. This decline continued more noticeably into 2024, dipping to a low near 0.83 in late 2024, before experiencing a moderate rebound to around 0.86 in the subsequent periods of 2025. The trend suggests slightly increasing interest expenses relative to earnings before interest and taxes (EBIT) over time, especially in 2024.
- EBIT Margin
- The EBIT margin percentage displayed fluctuation and an overall declining pattern. From an initial high of approximately 9.09% in Q1 2021, the margin decreased and stabilized around 8.5%-8.7% during 2022 and early 2023. In 2024, there was a clear decline to levels near 5.9%-6.5%, indicating a significant contraction in operating profitability. A partial recovery occurred in early 2025, peaking close to 7.76%, but subsequently dropping again to around 5.92% by Q3 2025. The data suggests pressure on operating profitability during 2024 and early 2025.
- Asset Turnover
- The asset turnover ratio maintained a relatively stable and efficient utilization of assets throughout the periods. Starting around 1.27 in early 2021, the ratio slightly increased to approximately 1.34 by late 2021 and early 2022. It then fluctuated mildly near 1.30-1.35 through 2024 and into 2025, reaching a peak of about 1.36 in Q3 2025. This consistency reflects steadiness in the company's efficiency in generating revenue from assets.
- Return on Assets (ROA)
- The ROA percentage mirrored the trends observed in EBIT margin and burdens. Initially robust at about 8.23% in Q1 2021, it exhibited some volatility but remained near 7.5%-8.2% through 2021 to early 2023. In 2024, ROA significantly decreased, falling to a low near 4.78%-5.40%, indicating reduced overall profitability relative to assets. Early 2025 showed signs of recovery up to around 7.14%, but ROA again declined to about 5.58% by Q3 2025. This pattern suggests that the company's asset profitability was adversely affected during 2024, with partial but inconsistent recovery thereafter.
Disaggregation of Net Profit Margin
UnitedHealth Group Inc., decomposition of net profit margin ratio (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 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).
- Tax Burden
- The tax burden ratio exhibits moderate fluctuations over the observed quarters. Initially, it increases from 0.76 to 0.79 and remains relatively stable around 0.78 to 0.79 for multiple quarters. However, starting from the first quarter of 2024, the ratio declines to a low of 0.73 before rising steadily again, peaking at 0.83 in the second quarter of 2025 and slightly dropping thereafter. Overall, the tax burden shows a cyclical pattern with a recent upward trend towards higher values.
- Interest Burden
- The interest burden ratio demonstrates a gradual but consistent decline across the timeline. Beginning at 0.93, it experiences a slight reduction before stabilizing around 0.9 for some quarters. From the first quarter of 2024 onward, the ratio decreases further to approximately 0.83 by the end of 2024 and maintains values slightly below 0.85 across 2025. This trend suggests a moderate increase in interest expenses relative to operating income over time.
- EBIT Margin
- EBIT margin reveals oscillating performance with notable declines and recoveries. The margin starts at 9.09% and falls to around 7.56% in mid-2021, followed by a recovery peaking near 8.7% through late 2022 and early 2023. Subsequently, there is a significant downturn from 6.48% in early 2024, declining steadily to a low near 5.86% by the end of 2024. A moderate recovery occurs during 2025, reaching 7.76% but falling back to 5.92% by the third quarter. This pattern reflects variability in operational profitability over the full period.
- Net Profit Margin
- The net profit margin aligns with trends seen in EBIT margin but with smaller amplitude. It declines from 6.46% to approximately 5.37% during 2021, then rises gradually to about 6.25% by late 2022. From early 2024, a more pronounced decrease sets in, reducing the margin to a low near 3.65%. A partial recovery is observed in 2025, where margins improve to 5.46%, followed by a drop to around 4.09% later in 2025. This indicates fluctuating profitability after accounting for all expenses, taxes, and interest, with a sharper decline compared to operational margins in the recent period.