DuPont Decomposition
Why does EQUIPPP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
19.2% = 4.0% × 1.36 × 3.50
Latest: FY2026
Profitability
Net Margin
4.0%
18.0% →4.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.36x
0.16x →1.36x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.50x
1.34x →3.50x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 15.4 pp over 4 years. Driven by net margin declining (18.0% → 4.0%), asset turnover improving (0.16x → 1.36x), leverage rising (1.34x → 3.50x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 18.0% | 0.16 | 1.34 | 3.9% |
| FY2024 | ₹0Cr | ₹-0Cr | -15.0% | 0.19 | 1.48 | -4.2% |
| FY2025 | ₹0Cr | ₹0Cr | 8.2% | 0.27 | 3.11 | 6.7% |
| FY2026 | ₹0Cr | ₹0Cr | 4.0% | 1.36 | 3.50 | 19.2% |
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.