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
3.9% = 0.5% × 3.00 × 2.61
Latest: FY2025
Profitability
Net Margin
0.5%
0.9% →0.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
3.00x
3.07x →3.00x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.61x
2.47x →2.61x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.3 pp over 3 years.
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| 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% |
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.