DuPont Decomposition
Why does DOLLAR earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.6% = 5.4% × 1.14 × 1.72
Latest: FY2025
Profitability
Net Margin
5.4%
3.8% →5.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.14x
1.27x →1.14x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.72x
1.52x →1.72x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.2 pp over 3 years. Driven by net margin improving (3.8% → 5.4%), asset turnover declining (1.27x → 1.14x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 3.8% | 1.27 | 1.52 | 7.4% |
| FY2024 | ₹0Cr | ₹0Cr | 5.8% | 1.15 | 1.72 | 11.6% |
| FY2025 | ₹0Cr | ₹0Cr | 5.4% | 1.14 | 1.72 | 10.6% |
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.