DuPont Decomposition
Why does DCAL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
1.5% = 3.3% × 0.25 × 1.79
Latest: FY2026
Profitability
Net Margin
3.3%
0.9% →3.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.25x
0.24x →0.25x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.79x
1.56x →1.79x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.1 pp over 5 years. Driven by net margin improving (0.9% → 3.3%), leverage rising (1.56x → 1.79x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 0.9% | 0.24 | 1.56 | 0.3% |
| FY2023 | ₹0Cr | ₹-0Cr | -1.3% | 0.24 | 1.63 | -0.5% |
| FY2024 | ₹0Cr | ₹-0Cr | -6.0% | 0.27 | 1.70 | -2.7% |
| FY2025 | ₹0Cr | ₹0Cr | 0.1% | 0.27 | 1.71 | 0.1% |
| FY2026 | ₹0Cr | ₹0Cr | 3.3% | 0.25 | 1.79 | 1.5% |
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.