DuPont Decomposition
Why does EASEMYTRIP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.5% = 18.3% × 0.51 × 1.56
Latest: FY2025
Profitability
Net Margin
18.3%
29.9% →18.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.51x
0.64x →0.51x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.56x
1.88x →1.56x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 21.8 pp over 3 years. Driven by net margin declining (29.9% → 18.3%), asset turnover declining (0.64x → 0.51x), leverage falling (1.88x → 1.56x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 29.9% | 0.64 | 1.88 | 36.3% |
| FY2024 | ₹0Cr | ₹0Cr | 17.5% | 0.66 | 1.48 | 17.1% |
| FY2025 | ₹0Cr | ₹0Cr | 18.3% | 0.51 | 1.56 | 14.5% |
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.