DuPont Decomposition
Why does EPACK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.8% = 2.6% × 1.04 × 2.11
Latest: FY2025
Profitability
Net Margin
2.6%
1.9% →2.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.04x
0.84x →1.04x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.11x
8.83x →2.11x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 8.5 pp over 4 years. Driven by asset turnover improving (0.84x → 1.04x), leverage falling (8.83x → 2.11x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.9% | 0.84 | 8.83 | 14.3% |
| FY2023 | ₹0Cr | ₹0Cr | 2.1% | 1.02 | 4.67 | 10.2% |
| FY2024 | ₹0Cr | ₹0Cr | 5.3% | 0.30 | 1.98 | 3.1% |
| FY2025 | ₹0Cr | ₹0Cr | 2.6% | 1.04 | 2.11 | 5.8% |
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.