DuPont Decomposition
Why does EASTSILK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.4% = 19.0% × 0.14 × 2.42
Latest: FY2025
Profitability
Net Margin
19.0%
-65.0% →19.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.14x
0.14x →0.14x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.42x
2.16x →2.42x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 26.0 pp over 2 years. Driven by net margin improving (-65.0% → 19.0%), leverage rising (2.16x → 2.42x).
Historical Decomposition
Last 2 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2024 | ₹0Cr | ₹-0Cr | -65.0% | 0.14 | 2.16 | -19.6% |
| FY2025 | ₹0Cr | ₹0Cr | 19.0% | 0.14 | 2.42 | 6.4% |
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.