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
5.4% = 1.9% × 1.87 × 1.53
Latest: FY2025
Profitability
Net Margin
1.9%
-1.2% →1.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.87x
2.23x →1.87x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.53x
2.00x →1.53x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 10.7 pp over 4 years. Driven by net margin improving (-1.2% → 1.9%), asset turnover declining (2.23x → 1.87x), leverage falling (2.00x → 1.53x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -1.2% | 2.23 | 2.00 | -5.3% |
| FY2023 | ₹0Cr | ₹-0Cr | -0.3% | 2.52 | 2.19 | -1.9% |
| FY2024 | ₹0Cr | ₹0Cr | 12.1% | 0.18 | 1.09 | 2.4% |
| FY2025 | ₹0Cr | ₹0Cr | 1.9% | 1.87 | 1.53 | 5.4% |
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.