DuPont Decomposition
Why does ECOSMOBLTY earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
27.1% = 9.2% × 1.91 × 1.54
Latest: FY2025
Profitability
Net Margin
9.2%
6.7% →9.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.91x
1.31x →1.91x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.54x
1.57x →1.54x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 13.3 pp over 4 years. Driven by net margin improving (6.7% → 9.2%), asset turnover improving (1.31x → 1.91x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.7% | 1.31 | 1.57 | 13.8% |
| FY2023 | ₹0Cr | ₹0Cr | 10.3% | 1.84 | 2.00 | 37.9% |
| FY2024 | ₹0Cr | ₹0Cr | 11.3% | 1.87 | 1.67 | 35.3% |
| FY2025 | ₹0Cr | ₹0Cr | 9.2% | 1.91 | 1.54 | 27.1% |
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.