DuPont Decomposition
Why does EMMVEE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
29.3% = 21.4% × 0.87 × 1.56
Latest: FY2026
Profitability
Net Margin
21.4%
1.5% →21.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.87x
0.72x →0.87x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.56x
5.98x →1.56x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 22.9 pp over 4 years. Driven by net margin improving (1.5% → 21.4%), asset turnover improving (0.72x → 0.87x), leverage falling (5.98x → 1.56x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 1.5% | 0.72 | 5.98 | 6.4% |
| FY2024 | ₹0Cr | ₹0Cr | 3.1% | 0.43 | 12.98 | 17.1% |
| FY2025 | ₹0Cr | ₹0Cr | 15.8% | 0.60 | 7.29 | 68.7% |
| FY2026 | ₹0Cr | ₹0Cr | 21.4% | 0.87 | 1.56 | 29.3% |
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.