DuPont Decomposition
Why does DEEPAKNTR earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.8% = 8.6% × 1.05 × 1.42
Latest: FY2025
Profitability
Net Margin
8.6%
11.9% →8.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.05x
0.38x →1.05x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.42x
1.25x →1.42x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.1 pp over 3 years. Driven by net margin declining (11.9% → 8.6%), asset turnover improving (0.38x → 1.05x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 11.9% | 0.38 | 1.25 | 5.7% |
| FY2024 | ₹0Cr | ₹0Cr | 11.9% | 0.35 | 1.27 | 5.3% |
| FY2025 | ₹0Cr | ₹0Cr | 8.6% | 1.05 | 1.42 | 12.8% |
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.