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
8.1% = 5.4% × 0.90 × 1.68
Latest: FY2026
Profitability
Net Margin
5.4%
5.9% →5.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.90x
0.59x →0.90x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.68x
2.43x →1.68x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~8%. Driven by asset turnover improving (0.59x → 0.90x), leverage falling (2.43x → 1.68x).
Historical Decomposition
Last 5 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 | 1.86 | 6.7% |
| FY2026 | ₹0Cr | ₹0Cr | 5.4% | 0.90 | 1.68 | 8.1% |
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.