DuPont Decomposition
Why does DAVANGERE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
3.1% = 5.3% × 0.28 × 2.12
Latest: FY2025
Profitability
Net Margin
5.3%
5.2% →5.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.28x
0.19x →0.28x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.12x
2.32x →2.12x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~3%.
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.2% | 0.19 | 2.32 | 2.3% |
| FY2023 | ₹0Cr | ₹0Cr | 4.8% | 0.46 | 1.91 | 4.2% |
| FY2024 | ₹0Cr | ₹0Cr | 5.8% | 0.31 | 2.01 | 3.6% |
| FY2025 | ₹0Cr | ₹0Cr | 5.3% | 0.28 | 2.12 | 3.1% |
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.