DuPont Decomposition
Why does DOLATALGO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
21.5% = 46.0% × 0.41 × 1.14
Latest: FY2025
Profitability
Net Margin
46.0%
57.2% →46.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.41x
0.38x →0.41x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.14x
1.45x →1.14x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 10.2 pp over 4 years. Driven by net margin declining (57.2% → 46.0%), leverage falling (1.45x → 1.14x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 57.2% | 0.38 | 1.45 | 31.7% |
| FY2023 | ₹0Cr | ₹0Cr | 47.3% | 0.30 | 1.26 | 18.1% |
| FY2024 | ₹0Cr | ₹0Cr | 51.7% | 0.14 | 1.18 | 8.6% |
| FY2025 | ₹0Cr | ₹0Cr | 46.0% | 0.41 | 1.14 | 21.5% |
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.