DuPont Decomposition
Why does DIAMONDYD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
1.4% = 0.6% × 1.85 × 1.33
Latest: FY2026
Profitability
Net Margin
0.6%
0.2% →0.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.85x
1.54x →1.85x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.33x
1.45x →1.33x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~1%. Driven by asset turnover improving (1.54x → 1.85x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 0.2% | 1.54 | 1.45 | 0.5% |
| FY2023 | ₹0Cr | ₹0Cr | 1.2% | 1.80 | 1.35 | 3.0% |
| FY2024 | ₹0Cr | ₹0Cr | 3.3% | 1.59 | 1.39 | 7.3% |
| FY2025 | ₹0Cr | ₹-0Cr | -2.0% | 1.78 | 1.38 | -5.0% |
| FY2026 | ₹0Cr | ₹0Cr | 0.6% | 1.85 | 1.33 | 1.4% |
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.