DuPont Decomposition
Why does DCMSRIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.4% = 3.6% × 0.81 × 3.89
Latest: FY2026
Profitability
Net Margin
3.6%
3.2% →3.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.81x
1.17x →0.81x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.89x
2.65x →3.89x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.6 pp over 5 years. Driven by asset turnover declining (1.17x → 0.81x), leverage rising (2.65x → 3.89x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.2% | 1.17 | 2.65 | 9.9% |
| FY2023 | ₹0Cr | ₹0Cr | 2.6% | 1.19 | 2.72 | 8.4% |
| FY2024 | ₹0Cr | ₹0Cr | 5.6% | 0.94 | 2.70 | 14.2% |
| FY2025 | ₹0Cr | ₹0Cr | 2.8% | 0.46 | 2.57 | 3.4% |
| FY2026 | ₹0Cr | ₹0Cr | 3.6% | 0.81 | 3.89 | 11.4% |
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.