DuPont Decomposition
Why does DEVYANI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.7% = 0.2% × 0.92 × 3.81
Latest: FY2025
Profitability
Net Margin
0.2%
7.9% →0.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.92x
0.25x →0.92x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.81x
3.08x →3.81x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 5.5 pp over 3 years. Driven by net margin declining (7.9% → 0.2%), asset turnover improving (0.25x → 0.92x), leverage rising (3.08x → 3.81x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 7.9% | 0.25 | 3.08 | 6.2% |
| FY2024 | ₹0Cr | ₹-0Cr | -4.7% | 0.21 | 4.67 | -4.6% |
| FY2025 | ₹0Cr | ₹0Cr | 0.2% | 0.92 | 3.81 | 0.7% |
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.