Returns on capital — ROE, ROIC, ROA and their decomposition
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Returns on capital — ROE, ROIC, ROA and their decomposition
Returns — ROE, ROIC, ROA and what drives them
%ROE over time
What does the shareholders' equity earn?
- ROE — from 26.50% to 16.20%: FY21 26.50%, FY22 23.00%, FY23 12.40%, FY24 17.40%, FY25 16.20%
Each series is one measure across the fiscal years; the points are reported or directly derived annual values, not smoothed.
ROE = net income / equity (point-in-time). All inputs from the same statement layer as the P&L and balance sheet. Source: SEC EDGAR companyfacts · filings 2009–2026
ROIC over time
What does total invested capital earn — regardless of whether it is funded by equity or debt?
- ROIC — from 10.80% to 9.30%: FY21 10.80%, FY22 9.70%, FY23 6.70%, FY24 9.30%, FY25 9.30%
Each series is one measure across the fiscal years; the points are reported or directly derived annual values, not smoothed.
ROIC = EBIT·(1 − effective tax rate) / (equity + debt − cash). The rate comes from tax expense / pre-tax income. All inputs from the same statement layer as the P&L and balance sheet. Source: SEC EDGAR companyfacts · filings 2009–2026
ROA over time
What do total assets earn?
- ROA — from 6.00% to 4.20%: FY21 6.00%, FY22 5.60%, FY23 3.10%, FY24 4.60%, FY25 4.20%
Each series is one measure across the fiscal years; the points are reported or directly derived annual values, not smoothed.
ROA = net income / total assets (point-in-time). All inputs from the same statement layer as the P&L and balance sheet. Source: SEC EDGAR companyfacts · filings 2009–2026
Returns compared
The same years, three denominators: equity, invested capital, total assets. The gap between ROE and ROIC shows how much the capital lever contributes.
- ROE — from 26.50% to 16.20%: FY21 26.50%, FY22 23.00%, FY23 12.40%, FY24 17.40%, FY25 16.20%
- ROIC — from 10.80% to 9.30%: FY21 10.80%, FY22 9.70%, FY23 6.70%, FY24 9.30%, FY25 9.30%
- ROA — from 6.00% to 4.20%: FY21 6.00%, FY22 5.60%, FY23 3.10%, FY24 4.60%, FY25 4.20%
Each series is one measure across the fiscal years; the points are reported or directly derived annual values, not smoothed.
ROE = net/equity · ROIC = EBIT·(1−tax rate)/(equity+debt−cash) · ROA = net/assets. Source: SEC EDGAR companyfacts · filings 2009–2026
DuPont: why return on equity moved — FY24 → FY25
ROE is a product of three factors: margin (how much of revenue is kept), asset turnover (how much revenue per balance-sheet dollar) and the equity multiplier (how much balance sheet per equity dollar). The bridge shows which of the three carried the move.
Shown: ROE 17.41pp → ROE 16.24pp, change -1.16pp.
- Margin -0.74pp
- Asset turnover -0.41pp
- Equity multiplier -0.01pp
Left to right: the first bar is the opening value, the middle bars are changes (up = increasing, down = decreasing), the last is the closing value. The changes sum to the difference exactly — no unexplained residual remains. The value axis is broken near zero so the contributions stay visible next to the large opening and closing bars; bar lengths are therefore not proportional to absolute value.
Margin 13.0 % → 12.4 %, turnover 0.35 → 0.34, multiplier 3.83 → 3.82. Order-neutral Shapley decomposition of a three-factor product: φ_a = Δa·[b₀c₀/3 + (b₀c₁+b₁c₀)/6 + b₁c₁/3], likewise for b and c — the three contributions equal the ROE change exactly. Source: SEC EDGAR companyfacts · filings 2009–2026
DuPont: why return on equity moved — FY24 → FY25
ROE is a product of three factors: margin (how much of revenue is kept), asset turnover (how much revenue per balance-sheet dollar) and the equity multiplier (how much balance sheet per equity dollar). The bridge shows which of the three carried the move.
Shown: ROE 17.41pp → ROE 16.24pp, change -1.16pp.
- Margin -0.74pp
- Asset turnover -0.41pp
- Equity multiplier -0.01pp
Left to right: the first bar is the opening value, the middle bars are changes (up = increasing, down = decreasing), the last is the closing value. The changes sum to the difference exactly — no unexplained residual remains. The value axis is broken near zero so the contributions stay visible next to the large opening and closing bars; bar lengths are therefore not proportional to absolute value.
Margin 13.0 % → 12.4 %, turnover 0.35 → 0.34, multiplier 3.83 → 3.82. Order-neutral Shapley decomposition of a three-factor product: φ_a = Δa·[b₀c₀/3 + (b₀c₁+b₁c₀)/6 + b₁c₁/3], likewise for b and c — the three contributions equal the ROE change exactly. Source: SEC EDGAR companyfacts · filings 2009–2026
DuPont: why return on equity moved — FY24 → FY25
ROE is a product of three factors: margin (how much of revenue is kept), asset turnover (how much revenue per balance-sheet dollar) and the equity multiplier (how much balance sheet per equity dollar). The bridge shows which of the three carried the move.
Shown: ROE 17.41pp → ROE 16.24pp, change -1.16pp.
- Margin -0.74pp
- Asset turnover -0.41pp
- Equity multiplier -0.01pp
Left to right: the first bar is the opening value, the middle bars are changes (up = increasing, down = decreasing), the last is the closing value. The changes sum to the difference exactly — no unexplained residual remains. The value axis is broken near zero so the contributions stay visible next to the large opening and closing bars; bar lengths are therefore not proportional to absolute value.
Margin 13.0 % → 12.4 %, turnover 0.35 → 0.34, multiplier 3.83 → 3.82. Order-neutral Shapley decomposition of a three-factor product: φ_a = Δa·[b₀c₀/3 + (b₀c₁+b₁c₀)/6 + b₁c₁/3], likewise for b and c — the three contributions equal the ROE change exactly. Source: SEC EDGAR companyfacts · filings 2009–2026
DuPont: why return on equity moved — FY24 → FY25
ROE is a product of three factors: margin (how much of revenue is kept), asset turnover (how much revenue per balance-sheet dollar) and the equity multiplier (how much balance sheet per equity dollar). The bridge shows which of the three carried the move.
Shown: ROE 17.41pp → ROE 16.24pp, change -1.16pp.
- Margin -0.74pp
- Asset turnover -0.41pp
- Equity multiplier -0.01pp
Left to right: the first bar is the opening value, the middle bars are changes (up = increasing, down = decreasing), the last is the closing value. The changes sum to the difference exactly — no unexplained residual remains. The value axis is broken near zero so the contributions stay visible next to the large opening and closing bars; bar lengths are therefore not proportional to absolute value.
Margin 13.0 % → 12.4 %, turnover 0.35 → 0.34, multiplier 3.83 → 3.82. Order-neutral Shapley decomposition of a three-factor product: φ_a = Δa·[b₀c₀/3 + (b₀c₁+b₁c₀)/6 + b₁c₁/3], likewise for b and c — the three contributions equal the ROE change exactly. Source: SEC EDGAR companyfacts · filings 2009–2026
DuPont: why return on equity moved — FY23 → FY25
ROE is a product of three factors: margin (how much of revenue is kept), asset turnover (how much revenue per balance-sheet dollar) and the equity multiplier (how much balance sheet per equity dollar). The bridge shows which of the three carried the move.
Shown: ROE 12.38pp → ROE 16.24pp, change 3.86pp.
- Margin 5.14pp
- Asset turnover -0.43pp
- Equity multiplier -0.84pp
Left to right: the first bar is the opening value, the middle bars are changes (up = increasing, down = decreasing), the last is the closing value. The changes sum to the difference exactly — no unexplained residual remains. The value axis is broken near zero so the contributions stay visible next to the large opening and closing bars; bar lengths are therefore not proportional to absolute value.
Margin 8.7 % → 12.4 %, turnover 0.35 → 0.34, multiplier 4.05 → 3.82. Order-neutral Shapley decomposition of a three-factor product: φ_a = Δa·[b₀c₀/3 + (b₀c₁+b₁c₀)/6 + b₁c₁/3], likewise for b and c — the three contributions equal the ROE change exactly. Source: SEC EDGAR companyfacts · filings 2009–2026
DuPont: why return on equity moved — FY23 → FY25
ROE is a product of three factors: margin (how much of revenue is kept), asset turnover (how much revenue per balance-sheet dollar) and the equity multiplier (how much balance sheet per equity dollar). The bridge shows which of the three carried the move.
Shown: ROE 12.38pp → ROE 16.24pp, change 3.86pp.
- Margin 5.14pp
- Asset turnover -0.43pp
- Equity multiplier -0.84pp
Left to right: the first bar is the opening value, the middle bars are changes (up = increasing, down = decreasing), the last is the closing value. The changes sum to the difference exactly — no unexplained residual remains. The value axis is broken near zero so the contributions stay visible next to the large opening and closing bars; bar lengths are therefore not proportional to absolute value.
Margin 8.7 % → 12.4 %, turnover 0.35 → 0.34, multiplier 4.05 → 3.82. Order-neutral Shapley decomposition of a three-factor product: φ_a = Δa·[b₀c₀/3 + (b₀c₁+b₁c₀)/6 + b₁c₁/3], likewise for b and c — the three contributions equal the ROE change exactly. Source: SEC EDGAR companyfacts · filings 2009–2026
DuPont: why return on equity moved — FY23 → FY25
ROE is a product of three factors: margin (how much of revenue is kept), asset turnover (how much revenue per balance-sheet dollar) and the equity multiplier (how much balance sheet per equity dollar). The bridge shows which of the three carried the move.
Shown: ROE 12.38pp → ROE 16.24pp, change 3.86pp.
- Margin 5.14pp
- Asset turnover -0.43pp
- Equity multiplier -0.84pp
Left to right: the first bar is the opening value, the middle bars are changes (up = increasing, down = decreasing), the last is the closing value. The changes sum to the difference exactly — no unexplained residual remains. The value axis is broken near zero so the contributions stay visible next to the large opening and closing bars; bar lengths are therefore not proportional to absolute value.
Margin 8.7 % → 12.4 %, turnover 0.35 → 0.34, multiplier 4.05 → 3.82. Order-neutral Shapley decomposition of a three-factor product: φ_a = Δa·[b₀c₀/3 + (b₀c₁+b₁c₀)/6 + b₁c₁/3], likewise for b and c — the three contributions equal the ROE change exactly. Source: SEC EDGAR companyfacts · filings 2009–2026
DuPont: why return on equity moved — FY23 → FY25
ROE is a product of three factors: margin (how much of revenue is kept), asset turnover (how much revenue per balance-sheet dollar) and the equity multiplier (how much balance sheet per equity dollar). The bridge shows which of the three carried the move.
Shown: ROE 12.38pp → ROE 16.24pp, change 3.86pp.
- Margin 5.14pp
- Asset turnover -0.43pp
- Equity multiplier -0.84pp
Left to right: the first bar is the opening value, the middle bars are changes (up = increasing, down = decreasing), the last is the closing value. The changes sum to the difference exactly — no unexplained residual remains. The value axis is broken near zero so the contributions stay visible next to the large opening and closing bars; bar lengths are therefore not proportional to absolute value.
Margin 8.7 % → 12.4 %, turnover 0.35 → 0.34, multiplier 4.05 → 3.82. Order-neutral Shapley decomposition of a three-factor product: φ_a = Δa·[b₀c₀/3 + (b₀c₁+b₁c₀)/6 + b₁c₁/3], likewise for b and c — the three contributions equal the ROE change exactly. Source: SEC EDGAR companyfacts · filings 2009–2026
DuPont: why return on equity moved — FY22 → FY25
ROE is a product of three factors: margin (how much of revenue is kept), asset turnover (how much revenue per balance-sheet dollar) and the equity multiplier (how much balance sheet per equity dollar). The bridge shows which of the three carried the move.
Shown: ROE 22.99pp → ROE 16.24pp, change -6.75pp.
- Margin -4.33pp
- Asset turnover -1.03pp
- Equity multiplier -1.39pp
Left to right: the first bar is the opening value, the middle bars are changes (up = increasing, down = decreasing), the last is the closing value. The changes sum to the difference exactly — no unexplained residual remains. The value axis is broken near zero so the contributions stay visible next to the large opening and closing bars; bar lengths are therefore not proportional to absolute value.
Margin 15.5 % → 12.4 %, turnover 0.36 → 0.34, multiplier 4.11 → 3.82. Order-neutral Shapley decomposition of a three-factor product: φ_a = Δa·[b₀c₀/3 + (b₀c₁+b₁c₀)/6 + b₁c₁/3], likewise for b and c — the three contributions equal the ROE change exactly. Source: SEC EDGAR companyfacts · filings 2009–2026
DuPont: why return on equity moved — FY22 → FY25
ROE is a product of three factors: margin (how much of revenue is kept), asset turnover (how much revenue per balance-sheet dollar) and the equity multiplier (how much balance sheet per equity dollar). The bridge shows which of the three carried the move.
Shown: ROE 22.99pp → ROE 16.24pp, change -6.75pp.
- Margin -4.33pp
- Asset turnover -1.03pp
- Equity multiplier -1.39pp
Left to right: the first bar is the opening value, the middle bars are changes (up = increasing, down = decreasing), the last is the closing value. The changes sum to the difference exactly — no unexplained residual remains. The value axis is broken near zero so the contributions stay visible next to the large opening and closing bars; bar lengths are therefore not proportional to absolute value.
Margin 15.5 % → 12.4 %, turnover 0.36 → 0.34, multiplier 4.11 → 3.82. Order-neutral Shapley decomposition of a three-factor product: φ_a = Δa·[b₀c₀/3 + (b₀c₁+b₁c₀)/6 + b₁c₁/3], likewise for b and c — the three contributions equal the ROE change exactly. Source: SEC EDGAR companyfacts · filings 2009–2026
DuPont: why return on equity moved — FY22 → FY25
ROE is a product of three factors: margin (how much of revenue is kept), asset turnover (how much revenue per balance-sheet dollar) and the equity multiplier (how much balance sheet per equity dollar). The bridge shows which of the three carried the move.
Shown: ROE 22.99pp → ROE 16.24pp, change -6.75pp.
- Margin -4.33pp
- Asset turnover -1.03pp
- Equity multiplier -1.39pp
Left to right: the first bar is the opening value, the middle bars are changes (up = increasing, down = decreasing), the last is the closing value. The changes sum to the difference exactly — no unexplained residual remains. The value axis is broken near zero so the contributions stay visible next to the large opening and closing bars; bar lengths are therefore not proportional to absolute value.
Margin 15.5 % → 12.4 %, turnover 0.36 → 0.34, multiplier 4.11 → 3.82. Order-neutral Shapley decomposition of a three-factor product: φ_a = Δa·[b₀c₀/3 + (b₀c₁+b₁c₀)/6 + b₁c₁/3], likewise for b and c — the three contributions equal the ROE change exactly. Source: SEC EDGAR companyfacts · filings 2009–2026
DuPont: why return on equity moved — FY22 → FY25
ROE is a product of three factors: margin (how much of revenue is kept), asset turnover (how much revenue per balance-sheet dollar) and the equity multiplier (how much balance sheet per equity dollar). The bridge shows which of the three carried the move.
Shown: ROE 22.99pp → ROE 16.24pp, change -6.75pp.
- Margin -4.33pp
- Asset turnover -1.03pp
- Equity multiplier -1.39pp
Left to right: the first bar is the opening value, the middle bars are changes (up = increasing, down = decreasing), the last is the closing value. The changes sum to the difference exactly — no unexplained residual remains. The value axis is broken near zero so the contributions stay visible next to the large opening and closing bars; bar lengths are therefore not proportional to absolute value.
Margin 15.5 % → 12.4 %, turnover 0.36 → 0.34, multiplier 4.11 → 3.82. Order-neutral Shapley decomposition of a three-factor product: φ_a = Δa·[b₀c₀/3 + (b₀c₁+b₁c₀)/6 + b₁c₁/3], likewise for b and c — the three contributions equal the ROE change exactly. Source: SEC EDGAR companyfacts · filings 2009–2026
Findings, method and provenance
- Return on equity 16.2% (-1.2pp vs FY24).
- DuPont. margin -0.7pp, asset turnover -0.4pp, equity multiplier -0.0pp — margin did the most work. Margin 13.0% → 12.4%, turnover 0.35 → 0.34×, multiplier 3.83 → 3.82×.
- ROIC 9.3% — NOPAT (EBIT at the effective tax rate) over equity plus debt less cash; the measure that ignores how the mix is financed.
- Capital returned 11.48bn (buybacks 0.00, dividends 11.48) against free cash flow 20.13bn — 57% of it.
All inputs from the same statement layer as the P&L, balance sheet and cash-flow slides. ROE = net income / equity · ROA = net income / assets · ROIC = EBIT·(1 − effective tax rate) / (equity + debt − cash). DuPont splits ΔROE into margin × asset turnover × equity multiplier using the order-neutral Shapley decomposition for a three-factor product — the three contributions sum to the ROE change exactly.
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