DuPont Decomposition
Why does 5PAISA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.3% = 29.8% × 0.14 × 2.76
Latest: FY2025
Profitability
Net Margin
29.8%
15.9% →29.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.14x
0.06x →0.14x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.76x
3.54x →2.76x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 8.2 pp over 3 years. Driven by net margin improving (15.9% → 29.8%), leverage falling (3.54x → 2.76x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 15.9% | 0.06 | 3.54 | 3.1% |
| FY2024 | ₹0Cr | ₹0Cr | 5.1% | 0.06 | 3.79 | 1.1% |
| FY2025 | ₹0Cr | ₹0Cr | 29.8% | 0.14 | 2.76 | 11.3% |
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.