DuPont Decomposition
Why does DIVISLAB earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.3% = 24.3% × 0.53 × 1.20
Latest: FY2026
Profitability
Net Margin
24.3%
33.6% →24.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.53x
0.66x →0.53x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.20x
1.14x →1.20x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 9.9 pp over 5 years. Driven by net margin declining (33.6% → 24.3%), asset turnover declining (0.66x → 0.53x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 33.6% | 0.66 | 1.14 | 25.2% |
| FY2023 | ₹0Cr | ₹0Cr | 23.8% | 0.53 | 1.13 | 14.3% |
| FY2024 | ₹0Cr | ₹0Cr | 20.5% | 0.50 | 1.14 | 11.8% |
| FY2025 | ₹0Cr | ₹0Cr | 23.4% | 0.55 | 1.13 | 14.6% |
| FY2026 | ₹0Cr | ₹0Cr | 24.3% | 0.53 | 1.20 | 15.3% |
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.