Stock Analysis on Net

Visa Inc. (NYSE:V)

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

Microsoft Excel LibreOffice Calc

Two-Component Disaggregation of ROE

Visa Inc., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = ROA × Financial Leverage
Sep 30, 2021 32.75% = 14.85% × 2.21
Sep 30, 2020 30.01% = 13.43% × 2.23
Sep 30, 2019 34.83% = 16.65% × 2.09
Sep 30, 2018 30.29% = 14.88% × 2.04
Sep 30, 2017 20.45% = 9.85% × 2.08
Sep 30, 2016 18.20% = 9.36% × 1.95

Based on: 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30).

The primary reason for the increase in return on equity ratio (ROE) over 2021 year is the increase in profitability measured by return on assets ratio (ROA).


Three-Component Disaggregation of ROE

Visa Inc., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Sep 30, 2021 32.75% = 51.07% × 0.29 × 2.21
Sep 30, 2020 30.01% = 49.74% × 0.27 × 2.23
Sep 30, 2019 34.83% = 52.57% × 0.32 × 2.09
Sep 30, 2018 30.29% = 49.98% × 0.30 × 2.04
Sep 30, 2017 20.45% = 36.49% × 0.27 × 2.08
Sep 30, 2016 18.20% = 39.72% × 0.24 × 1.95

Based on: 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30).

The primary reason for the increase in return on equity ratio (ROE) over 2021 year is the increase in efficiency measured by asset turnover ratio.


Five-Component Disaggregation of ROE

Visa Inc., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Sep 30, 2021 32.75% = 0.77 × 0.97 × 68.77% × 0.29 × 2.21
Sep 30, 2020 30.01% = 0.79 × 0.96 × 65.49% × 0.27 × 2.23
Sep 30, 2019 34.83% = 0.81 × 0.97 × 67.10% × 0.32 × 2.09
Sep 30, 2018 30.29% = 0.80 × 0.95 × 65.11% × 0.30 × 2.04
Sep 30, 2017 20.45% = 0.57 × 0.95 × 66.77% × 0.27 × 2.08
Sep 30, 2016 18.20% = 0.75 × 0.95 × 55.95% × 0.24 × 1.95

Based on: 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30).

The primary reason for the increase in return on equity ratio (ROE) over 2021 year is the increase in efficiency measured by asset turnover ratio.


Two-Component Disaggregation of ROA

Visa Inc., decomposition of ROA

Microsoft Excel LibreOffice Calc
ROA = Net Profit Margin × Asset Turnover
Sep 30, 2021 14.85% = 51.07% × 0.29
Sep 30, 2020 13.43% = 49.74% × 0.27
Sep 30, 2019 16.65% = 52.57% × 0.32
Sep 30, 2018 14.88% = 49.98% × 0.30
Sep 30, 2017 9.85% = 36.49% × 0.27
Sep 30, 2016 9.36% = 39.72% × 0.24

Based on: 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30).

The primary reason for the increase in return on assets ratio (ROA) over 2021 year is the increase in asset turnover ratio.


Four-Component Disaggregation of ROA

Visa Inc., decomposition of ROA

Microsoft Excel LibreOffice Calc
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Sep 30, 2021 14.85% = 0.77 × 0.97 × 68.77% × 0.29
Sep 30, 2020 13.43% = 0.79 × 0.96 × 65.49% × 0.27
Sep 30, 2019 16.65% = 0.81 × 0.97 × 67.10% × 0.32
Sep 30, 2018 14.88% = 0.80 × 0.95 × 65.11% × 0.30
Sep 30, 2017 9.85% = 0.57 × 0.95 × 66.77% × 0.27
Sep 30, 2016 9.36% = 0.75 × 0.95 × 55.95% × 0.24

Based on: 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30).

The primary reason for the increase in return on assets ratio (ROA) over 2021 year is the increase in efficiency measured by asset turnover ratio.


Disaggregation of Net Profit Margin

Visa Inc., decomposition of net profit margin ratio

Microsoft Excel LibreOffice Calc
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Sep 30, 2021 51.07% = 0.77 × 0.97 × 68.77%
Sep 30, 2020 49.74% = 0.79 × 0.96 × 65.49%
Sep 30, 2019 52.57% = 0.81 × 0.97 × 67.10%
Sep 30, 2018 49.98% = 0.80 × 0.95 × 65.11%
Sep 30, 2017 36.49% = 0.57 × 0.95 × 66.77%
Sep 30, 2016 39.72% = 0.75 × 0.95 × 55.95%

Based on: 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30).

The primary reason for the increase in net profit margin ratio over 2021 year is the increase in operating profitability measured by EBIT margin ratio.