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
12.2% = 12.5% × 0.77 × 1.26
Latest: FY2025
Profitability
Net Margin
12.5%
7.5% →12.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.77x
0.84x →0.77x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.26x
1.23x →1.26x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.4 pp over 3 years. Driven by net margin improving (7.5% → 12.5%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 7.5% | 0.84 | 1.23 | 7.8% |
| FY2024 | ₹0Cr | ₹0Cr | 11.8% | 0.78 | 1.22 | 11.3% |
| FY2025 | ₹0Cr | ₹0Cr | 12.5% | 0.77 | 1.26 | 12.2% |
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.