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
14.6% = 7.3% × 1.24 × 1.60
Latest: FY2025
Profitability
Net Margin
7.3%
6.1% →7.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.24x
0.33x →1.24x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.60x
1.54x →1.60x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 11.5 pp over 3 years. Driven by net margin improving (6.1% → 7.3%), asset turnover improving (0.33x → 1.24x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 6.1% | 0.33 | 1.54 | 3.1% |
| FY2024 | ₹0Cr | ₹0Cr | 8.8% | 0.44 | 1.23 | 4.8% |
| FY2025 | ₹0Cr | ₹0Cr | 7.3% | 1.24 | 1.60 | 14.6% |
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.