DuPont Decomposition
Why does DOLPHIN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
17.1% = 62.8% × 0.16 × 1.69
Latest: FY2025
Profitability
Net Margin
62.8%
75.0% →62.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.16x
0.01x →0.16x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.69x
1.03x →1.69x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 16.4 pp over 2 years. Driven by net margin declining (75.0% → 62.8%), asset turnover improving (0.01x → 0.16x), leverage rising (1.03x → 1.69x).
Historical Decomposition
Last 2 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2024 | ₹0Cr | ₹0Cr | 75.0% | 0.01 | 1.03 | 0.7% |
| FY2025 | ₹0Cr | ₹0Cr | 62.8% | 0.16 | 1.69 | 17.1% |
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.