DuPont Decomposition
Why does DREAMFOLKS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
21.8% = 5.1% × 2.59 × 1.66
Latest: FY2025
Profitability
Net Margin
5.1%
5.8% →5.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.59x
1.67x →2.59x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.66x
2.05x →1.66x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.0 pp over 4 years. Driven by asset turnover improving (1.67x → 2.59x), leverage falling (2.05x → 1.66x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.8% | 1.67 | 2.05 | 19.8% |
| FY2023 | ₹0Cr | ₹0Cr | 9.4% | 2.39 | 2.06 | 46.2% |
| FY2024 | ₹0Cr | ₹0Cr | 6.1% | 2.71 | 1.77 | 29.2% |
| FY2025 | ₹0Cr | ₹0Cr | 5.1% | 2.59 | 1.66 | 21.8% |
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.