DuPont Decomposition
Why does ESCORTS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
19.4% = 20.8% × 0.73 × 1.28
Latest: FY2026
Profitability
Net Margin
20.8%
10.4% →20.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.73x
0.78x →0.73x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.28x
1.20x →1.28x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 9.7 pp over 5 years. Driven by net margin improving (10.4% → 20.8%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 10.4% | 0.78 | 1.20 | 9.7% |
| FY2023 | ₹0Cr | ₹0Cr | 7.7% | 0.82 | 1.23 | 7.8% |
| FY2024 | ₹0Cr | ₹0Cr | 11.2% | 0.78 | 1.32 | 11.5% |
| FY2025 | ₹0Cr | ₹0Cr | 12.3% | 0.78 | 1.26 | 12.2% |
| FY2026 | ₹0Cr | ₹0Cr | 20.8% | 0.73 | 1.28 | 19.4% |
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.