DuPont Decomposition
Why does DIXON earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
30.8% = 2.9% × 2.55 × 4.10
Latest: FY2026
Profitability
Net Margin
2.9%
1.8% →2.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.55x
2.49x →2.55x
Revenue per ₹ of assets
Leverage
Equity Multiplier
4.10x
4.29x →4.10x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 11.7 pp over 5 years. Driven by net margin improving (1.8% → 2.9%). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.8% | 2.49 | 4.29 | 19.1% |
| FY2023 | ₹0Cr | ₹0Cr | 2.1% | 2.60 | 3.64 | 19.9% |
| FY2024 | ₹0Cr | ₹0Cr | 2.1% | 2.52 | 4.13 | 21.7% |
| FY2025 | ₹0Cr | ₹0Cr | 2.8% | 2.32 | 5.57 | 36.4% |
| FY2026 | ₹0Cr | ₹0Cr | 2.9% | 2.55 | 4.10 | 30.8% |
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.