DuPont Decomposition
Why does ENDURANCE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.9% = 6.5% × 1.26 × 1.70
Latest: FY2026
Profitability
Net Margin
6.5%
6.2% →6.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.26x
1.27x →1.26x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.70x
1.49x →1.70x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.2 pp over 5 years. Driven by leverage rising (1.49x → 1.70x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.2% | 1.27 | 1.49 | 11.8% |
| FY2023 | ₹0Cr | ₹0Cr | 5.5% | 1.28 | 1.54 | 10.9% |
| FY2024 | ₹0Cr | ₹0Cr | 6.8% | 1.28 | 1.58 | 13.7% |
| FY2025 | ₹0Cr | ₹0Cr | 7.2% | 1.26 | 1.60 | 14.6% |
| FY2026 | ₹0Cr | ₹0Cr | 6.5% | 1.26 | 1.70 | 13.9% |
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.