DuPont Decomposition
Why does DATAMATICS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.1% = 11.9% × 0.84 × 1.52
Latest: FY2025
Profitability
Net Margin
11.9%
14.0% →11.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.84x
0.32x →0.84x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.52x
1.22x →1.52x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 9.5 pp over 3 years. Driven by net margin declining (14.0% → 11.9%), asset turnover improving (0.32x → 0.84x), leverage rising (1.22x → 1.52x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 14.0% | 0.32 | 1.22 | 5.6% |
| FY2024 | ₹0Cr | ₹0Cr | 12.6% | 0.28 | 1.19 | 4.2% |
| FY2025 | ₹0Cr | ₹0Cr | 11.9% | 0.84 | 1.52 | 15.1% |
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.