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ROE in the profitability Ratio sheet is different from the DuPont Framework ratio analysis in XBRL data. What does that indicate? For example, In the
ROE in the profitability Ratio sheet is different from the DuPont Framework ratio analysis in XBRL data. What does that indicate?
For example, In the DuPont framework, ROE in decimal is
Year | 2014 | 2015 | 2016 |
Ratio | 0.15 | 0.2 | 0.26 |
But in Profitability, ROE expressed in percentages is
Year | 2014 | 2015 | 2016 |
Ratio | 4.94% | 6.3% | 7.73% |
Thanks. Below is DuPont Analysis just in case.
DuPont Framework | ||||||||
Company A | Market Comparison | |||||||
Year | 2014 | 2015 | 2016 | Return on Equity (ROE)=net Sales/Average shareholders' equity | Company A | Company B | Company C | |
Ratio | 0.15 | 0.2 | 0.26 | 0.26 | 0.42 | 1.42 | ||
Year | 2014 | 2015 | 2016 | Profit margin (PM) on sales=Net income/net sales | Company A | Company B | Company C | |
Ratio | 1.4 | 1.7 | 1.69 | 1.69 | 0.31 | 0.21 | ||
Year | 2014 | 2015 | 2016 | Asset Turnover (AT) = Net Sales /Average Total Assets | Company A | Company B | Company C | |
Ratio | 0.06 | 0.06 | 0.09 | 0.09 | 0.48 | 1.03 | ||
Year | 2014 | 2015 | 2016 | Equity multiplier (EM) =Average total assets/average total equity | Company A | Company B | Company C | |
Ratio | 1.2 | 1.23 | 1.23 | 1.23 | 2.39 | 5.2 | ||
DuPont Framework | ||||||||
| ROE=PMxATxEM | 0.19 | 0.36 | 1.12 |
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