DuPont Decomposition
Why does DEEPAKFERT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.8% = 6.4% × 0.70 × 2.41
Latest: FY2026
Profitability
Net Margin
6.4%
10.3% →6.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.70x
0.75x →0.70x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.41x
2.25x →2.41x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 6.7 pp over 5 years. Driven by net margin declining (10.3% → 6.4%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 10.3% | 0.75 | 2.25 | 17.5% |
| FY2023 | ₹0Cr | ₹0Cr | 13.9% | 0.76 | 2.25 | 23.9% |
| FY2024 | ₹0Cr | ₹0Cr | 6.4% | 0.58 | 2.20 | 8.2% |
| FY2025 | ₹0Cr | ₹0Cr | 9.1% | 0.78 | 2.11 | 15.0% |
| FY2026 | ₹0Cr | ₹0Cr | 6.4% | 0.70 | 2.41 | 10.8% |
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.