DuPont Decomposition
Why does EIMCOELECO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.3% = 16.8% × 0.44 × 1.12
Latest: FY2026
Profitability
Net Margin
16.8%
15.3% →16.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.44x
0.17x →0.44x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.12x
1.11x →1.12x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.5 pp over 4 years. Driven by net margin improving (15.3% → 16.8%), asset turnover improving (0.17x → 0.44x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 15.3% | 0.17 | 1.11 | 2.8% |
| FY2024 | ₹0Cr | ₹0Cr | 17.6% | 0.19 | 1.17 | 3.8% |
| FY2025 | ₹0Cr | ₹0Cr | 19.8% | 0.51 | 1.13 | 11.3% |
| FY2026 | ₹0Cr | ₹0Cr | 16.8% | 0.44 | 1.12 | 8.3% |
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.