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
12.6% = 9.8% × 0.84 × 1.53
Latest: FY2026
Profitability
Net Margin
9.8%
13.1% →9.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.84x
1.08x →0.84x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.53x
1.29x →1.53x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 5.8 pp over 5 years. Driven by net margin declining (13.1% → 9.8%), asset turnover declining (1.08x → 0.84x), leverage rising (1.29x → 1.53x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 13.1% | 1.08 | 1.29 | 18.4% |
| FY2023 | ₹0Cr | ₹0Cr | 12.9% | 1.14 | 1.22 | 18.0% |
| FY2024 | ₹0Cr | ₹0Cr | 12.8% | 1.06 | 1.19 | 16.1% |
| FY2025 | ₹0Cr | ₹0Cr | 11.9% | 0.84 | 1.51 | 15.0% |
| FY2026 | ₹0Cr | ₹0Cr | 9.8% | 0.84 | 1.53 | 12.6% |
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.