DuPont Decomposition
Why does EIDPARRY earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.8% = 3.8% × 0.96 × 1.89
Latest: FY2025
Profitability
Net Margin
3.8%
4.2% →3.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.96x
0.37x →0.96x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.89x
3.09x →1.89x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.1 pp over 3 years. Driven by asset turnover improving (0.37x → 0.96x), leverage falling (3.09x → 1.89x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 4.2% | 0.37 | 3.09 | 4.7% |
| FY2024 | ₹0Cr | ₹0Cr | 5.3% | 0.26 | 3.05 | 4.2% |
| FY2025 | ₹0Cr | ₹0Cr | 3.8% | 0.96 | 1.89 | 6.8% |
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.