DuPont Decomposition
Why does EPACKPEB earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.8% = 5.3% × 1.21 × 2.63
Latest: FY2025
Profitability
Net Margin
5.3%
4.4% →5.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.21x
1.44x →1.21x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.63x
2.99x →2.63x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.4 pp over 4 years. Driven by asset turnover declining (1.44x → 1.21x), leverage falling (2.99x → 2.63x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.4% | 1.44 | 2.99 | 19.1% |
| FY2023 | ₹0Cr | ₹0Cr | 3.7% | 1.50 | 3.43 | 19.0% |
| FY2024 | ₹0Cr | ₹0Cr | 4.8% | 1.46 | 3.63 | 25.4% |
| FY2025 | ₹0Cr | ₹0Cr | 5.3% | 1.21 | 2.63 | 16.8% |
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.