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
12.4% = 38.8% × 0.12 × 2.77
Latest: FY2026
Profitability
Net Margin
38.8%
39.9% →38.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.12x
0.15x →0.12x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.77x
3.58x →2.77x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 8.7 pp over 4 years. Driven by net margin declining (39.9% → 38.8%), leverage falling (3.58x → 2.77x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 39.9% | 0.15 | 3.58 | 21.1% |
| FY2024 | ₹0Cr | ₹0Cr | 40.1% | 0.13 | 4.38 | 23.3% |
| FY2025 | ₹0Cr | ₹0Cr | 38.5% | 0.13 | 2.80 | 14.4% |
| FY2026 | ₹0Cr | ₹0Cr | 38.8% | 0.12 | 2.77 | 12.4% |
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.