DuPont Decomposition
Why does 360ONE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.4% = 38.5% × 0.13 × 2.80
Latest: FY2025
Profitability
Net Margin
38.5%
32.4% →38.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.13x
0.04x →0.13x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.80x
3.58x →2.80x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 9.4 pp over 3 years. Driven by net margin improving (32.4% → 38.5%), leverage falling (3.58x → 2.80x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 32.4% | 0.04 | 3.58 | 5.0% |
| FY2024 | ₹0Cr | ₹0Cr | 30.6% | 0.05 | 4.38 | 7.0% |
| FY2025 | ₹0Cr | ₹0Cr | 38.5% | 0.13 | 2.80 | 14.4% |
How to read DuPont
- • Rising ROE from margin = pricing power, operational improvement (good)
- • Rising ROE from turnover = better asset utilization (good)
- • Rising ROE from leverage = more debt, amplified risk (caution)
- • Falling ROE across all three = structural deterioration (red flag)
DuPont decomposition from audited annual financials. Factual analysis, not investment advice.