DuPont Decomposition
Why does DMART earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.1% = 4.3% × 2.33 × 1.21
Latest: FY2026
Profitability
Net Margin
4.3%
4.8% →4.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.33x
2.00x →2.33x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.21x
1.13x →1.21x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.2 pp over 5 years. Driven by asset turnover improving (2.00x → 2.33x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.8% | 2.00 | 1.13 | 10.9% |
| FY2023 | ₹0Cr | ₹0Cr | 5.6% | 2.36 | 1.13 | 14.8% |
| FY2024 | ₹0Cr | ₹0Cr | 5.0% | 2.39 | 1.13 | 13.6% |
| FY2025 | ₹0Cr | ₹0Cr | 4.6% | 2.44 | 1.13 | 12.6% |
| FY2026 | ₹0Cr | ₹0Cr | 4.3% | 2.33 | 1.21 | 12.1% |
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.