DuPont Decomposition
Why does DYNPRO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.7% = 4.2% × 0.87 × 1.85
Latest: FY2025
Profitability
Net Margin
4.2%
5.9% →4.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.87x
0.59x →0.87x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.85x
2.43x →1.85x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.7 pp over 4 years. Driven by net margin declining (5.9% → 4.2%), asset turnover improving (0.59x → 0.87x), leverage falling (2.43x → 1.85x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.9% | 0.59 | 2.43 | 8.4% |
| FY2023 | ₹0Cr | ₹-0Cr | -1.0% | 0.70 | 2.25 | -1.6% |
| FY2024 | ₹0Cr | ₹0Cr | 1.3% | 0.70 | 1.97 | 1.8% |
| FY2025 | ₹0Cr | ₹0Cr | 4.2% | 0.87 | 1.85 | 6.7% |
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.