All articles tagged with "DuPont Analysis"
Meta's Family of Apps earns a 51.5% operating margin. Its ROIC is declining at -6.3 points per quarter. Both facts are true simultaneously. The gap between them reveals everything about the largest AI infrastructure bet in advertising history — and the accounting policies designed to make it look cheaper than it is.
FIX has 40.8% ROIC. PWR has 9.7%—despite 4x the revenue. The 'data center exposure' explanation is incomplete. The full story: FIX earns 2.5x higher margins AND turns assets 30% faster. Here's the DuPont analysis of six infrastructure contractors building America's data centers.
Intuitive Surgical generates 3x the returns on capital of Medtronic and Stryker. DuPont decomposition reveals ISRG wins on both NOPAT margin (25.6% vs 15%) AND capital turnover (0.84x vs 0.49x) — a rare double advantage. The counter-intuitive finding: high stock compensation actually understates their operating efficiency.
Both Jabil (29% ROIC) and Celestica (39% ROIC) rank among the best capital allocators in EMS. But DuPont decomposition reveals they get there through opposite mechanisms — JBL wins on turnover (13x), CLS wins on margin (10.2%). The counter-intuitive finding: CLS has better metrics AND faster growth, yet trades at an apparent discount. Here's what the data reveals.
Adobe's ROIC didn't just beat peers—it doubled in 8 quarters. The story isn't 'Adobe has high ROIC.' It's WHY it improved from 50% to 105% while Salesforce stayed at 12%. DuPont decomposition reveals the answer.
Yum Brands' shareholder equity is -$7.5 billion. Yet its ROIC is 50.8% - 2.2x McDonald's 22.8%. This isn't financial engineering. It's the byproduct of franchise economics: when a business doesn't need capital, it returns excess to shareholders. We break down the mechanism behind negative equity in asset-light models.
KLA Corporation delivers 43% ROIC—highest in semiconductor equipment. But SEC filings reveal 33% China revenue concentration, DOJ export investigations, and rare earth supply risks. Our DuPont analysis shows KLAC's zero-debt, asset-light model drives returns, while ASML's 75% invested capital growth explains its ROIC decline. Lam Research emerges as the 'boring winner' with stable returns and minimal risk.
Walmart's net margin is actually higher than Costco's (3.96% vs 2.97%). But Costco's ROIC is 2x higher (41.2% vs 20.9%). The difference isn't profit margin—it's asset turnover. Here's the DuPont decomposition of retail capital efficiency.