DuPont Decomposition
Why does ENTERO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.8% = 1.8% × 1.83 × 2.13
Latest: FY2026
Profitability
Net Margin
1.8%
-1.2% →1.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.83x
2.23x →1.83x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.13x
2.01x →2.13x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 12.1 pp over 5 years. Driven by net margin improving (-1.2% → 1.8%), asset turnover declining (2.23x → 1.83x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -1.2% | 2.23 | 2.01 | -5.3% |
| FY2023 | ₹0Cr | ₹-0Cr | -0.3% | 2.52 | 2.20 | -1.9% |
| FY2024 | ₹0Cr | ₹0Cr | 1.0% | 1.66 | 1.43 | 2.4% |
| FY2025 | ₹0Cr | ₹0Cr | 1.9% | 1.89 | 1.57 | 5.5% |
| FY2026 | ₹0Cr | ₹0Cr | 1.8% | 1.83 | 2.13 | 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.