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
12.6% = 6.1% × 1.07 × 1.94
Latest: FY2026
Profitability
Net Margin
6.1%
4.4% →6.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.07x
1.44x →1.07x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.94x
2.99x →1.94x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 6.5 pp over 5 years. Driven by net margin improving (4.4% → 6.1%), asset turnover declining (1.44x → 1.07x), leverage falling (2.99x → 1.94x).
Historical Decomposition
Last 5 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 | 5.2% | 1.22 | 2.63 | 16.8% |
| FY2026 | ₹0Cr | ₹0Cr | 6.1% | 1.07 | 1.94 | 12.6% |
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.