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

Walt Disney Co. (NYSE:DIS)

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

Beginner level

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

Two-Component Disaggregation of ROE

Walt Disney Co., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = ROA × Financial Leverage
Oct 3, 2020 -3.43% = -1.42% × 2.41
Sep 28, 2019 12.44% = 5.70% × 2.18
Sep 29, 2018 25.83% = 12.78% × 2.02
Sep 30, 2017 21.74% = 9.37% × 2.32
Oct 1, 2016 21.71% = 10.20% × 2.13
Oct 3, 2015 18.83% = 9.51% × 1.98

Based on: 10-K (filing date: 2020-11-25), 10-K (filing date: 2019-11-20), 10-K (filing date: 2018-11-21), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-23), 10-K (filing date: 2015-11-25).

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

Three-Component Disaggregation of ROE

Walt Disney Co., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Oct 3, 2020 -3.43% = -4.38% × 0.32 × 2.41
Sep 28, 2019 12.44% = 15.89% × 0.36 × 2.18
Sep 29, 2018 25.83% = 21.20% × 0.60 × 2.02
Sep 30, 2017 21.74% = 16.29% × 0.58 × 2.32
Oct 1, 2016 21.71% = 16.88% × 0.60 × 2.13
Oct 3, 2015 18.83% = 15.98% × 0.59 × 1.98

Based on: 10-K (filing date: 2020-11-25), 10-K (filing date: 2019-11-20), 10-K (filing date: 2018-11-21), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-23), 10-K (filing date: 2015-11-25).

The primary reason for the decrease in return on equity ratio (ROE) over 2020 year is the decrease in profitability measured by net profit margin ratio.

Five-Component Disaggregation of ROE

Walt Disney Co., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Oct 3, 2020 -3.43% = — × — × -0.79% × 0.32 × 2.41
Sep 28, 2019 12.44% = 0.78 × 0.92 × 22.04% × 0.36 × 2.18
Sep 29, 2018 25.83% = 0.88 × 0.95 × 25.14% × 0.60 × 2.02
Sep 30, 2017 21.74% = 0.67 × 0.96 × 25.23% × 0.58 × 2.32
Oct 1, 2016 21.71% = 0.65 × 0.98 × 26.64% × 0.60 × 2.13
Oct 3, 2015 18.83% = 0.63 × 0.98 × 26.04% × 0.59 × 1.98

Based on: 10-K (filing date: 2020-11-25), 10-K (filing date: 2019-11-20), 10-K (filing date: 2018-11-21), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-23), 10-K (filing date: 2015-11-25).

Two-Component Disaggregation of ROA

Walt Disney Co., decomposition of ROA

Microsoft Excel LibreOffice Calc
ROA = Net Profit Margin × Asset Turnover
Oct 3, 2020 -1.42% = -4.38% × 0.32
Sep 28, 2019 5.70% = 15.89% × 0.36
Sep 29, 2018 12.78% = 21.20% × 0.60
Sep 30, 2017 9.37% = 16.29% × 0.58
Oct 1, 2016 10.20% = 16.88% × 0.60
Oct 3, 2015 9.51% = 15.98% × 0.59

Based on: 10-K (filing date: 2020-11-25), 10-K (filing date: 2019-11-20), 10-K (filing date: 2018-11-21), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-23), 10-K (filing date: 2015-11-25).

The primary reason for the decrease in return on assets ratio (ROA) over 2020 year is the decrease in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

Walt Disney Co., decomposition of ROA

Microsoft Excel LibreOffice Calc
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Oct 3, 2020 -1.42% = — × — × -0.79% × 0.32
Sep 28, 2019 5.70% = 0.78 × 0.92 × 22.04% × 0.36
Sep 29, 2018 12.78% = 0.88 × 0.95 × 25.14% × 0.60
Sep 30, 2017 9.37% = 0.67 × 0.96 × 25.23% × 0.58
Oct 1, 2016 10.20% = 0.65 × 0.98 × 26.64% × 0.60
Oct 3, 2015 9.51% = 0.63 × 0.98 × 26.04% × 0.59

Based on: 10-K (filing date: 2020-11-25), 10-K (filing date: 2019-11-20), 10-K (filing date: 2018-11-21), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-23), 10-K (filing date: 2015-11-25).

Disaggregation of Net Profit Margin

Walt Disney Co., decomposition of net profit margin ratio

Microsoft Excel LibreOffice Calc
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Oct 3, 2020 -4.38% = — × — × -0.79%
Sep 28, 2019 15.89% = 0.78 × 0.92 × 22.04%
Sep 29, 2018 21.20% = 0.88 × 0.95 × 25.14%
Sep 30, 2017 16.29% = 0.67 × 0.96 × 25.23%
Oct 1, 2016 16.88% = 0.65 × 0.98 × 26.64%
Oct 3, 2015 15.98% = 0.63 × 0.98 × 26.04%

Based on: 10-K (filing date: 2020-11-25), 10-K (filing date: 2019-11-20), 10-K (filing date: 2018-11-21), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-23), 10-K (filing date: 2015-11-25).