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
12.6% = 4.6% × 2.44 × 1.14
Latest: FY2025
Profitability
Net Margin
4.6%
4.3% →4.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.44x
0.59x →2.44x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.14x
1.13x →1.14x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 9.8 pp over 3 years. Driven by asset turnover improving (0.59x → 2.44x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 4.3% | 0.59 | 1.13 | 2.9% |
| FY2024 | ₹0Cr | ₹0Cr | 4.4% | 0.60 | 1.13 | 3.0% |
| FY2025 | ₹0Cr | ₹0Cr | 4.6% | 2.44 | 1.14 | 12.6% |
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.