DuPont Decomposition
Why does EUREKAFORB earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
3.5% = 6.0% × 0.40 × 1.46
Latest: FY2026
Profitability
Net Margin
6.0%
0.7% →6.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.40x
0.06x →0.40x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.46x
1.50x →1.46x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.5 pp over 5 years. Driven by net margin improving (0.7% → 6.0%), asset turnover improving (0.06x → 0.40x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 0.7% | 0.06 | 1.50 | 0.1% |
| FY2023 | ₹0Cr | ₹0Cr | 1.3% | 0.34 | 1.47 | 0.7% |
| FY2024 | ₹0Cr | ₹0Cr | 4.4% | 0.36 | 1.45 | 2.3% |
| FY2025 | ₹0Cr | ₹0Cr | 6.8% | 0.38 | 1.44 | 3.7% |
| FY2026 | ₹0Cr | ₹0Cr | 6.0% | 0.40 | 1.46 | 3.5% |
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.