DuPont Decomposition
Why does ACCURACY earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
3.2% = 0.6% × 2.07 × 2.60
Latest: FY2026
Profitability
Net Margin
0.6%
2.2% →0.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.07x
2.74x →2.07x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.60x
2.78x →2.60x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 13.6 pp over 5 years. Driven by net margin declining (2.2% → 0.6%), asset turnover declining (2.74x → 2.07x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.2% | 2.74 | 2.78 | 16.7% |
| FY2023 | ₹0Cr | ₹0Cr | 0.9% | 3.07 | 2.47 | 7.1% |
| FY2024 | ₹0Cr | ₹0Cr | 0.1% | 2.55 | 2.40 | 0.4% |
| FY2025 | ₹0Cr | ₹0Cr | 0.5% | 3.00 | 2.61 | 3.9% |
| FY2026 | ₹0Cr | ₹0Cr | 0.6% | 2.07 | 2.60 | 3.2% |
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.