DuPont Decomposition
Why does EUROBOND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.5% = 5.3% × 1.30 × 2.41
Latest: FY2026
Profitability
Net Margin
5.3%
6.1% →5.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.30x
1.17x →1.30x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.41x
2.05x →2.41x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.1 pp over 5 years. Driven by asset turnover improving (1.17x → 1.30x), leverage rising (2.05x → 2.41x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.1% | 1.17 | 2.05 | 14.5% |
| FY2023 | ₹0Cr | ₹0Cr | 3.1% | 1.48 | 2.21 | 10.0% |
| FY2024 | ₹0Cr | ₹0Cr | 3.7% | 1.41 | 2.45 | 12.7% |
| FY2025 | ₹0Cr | ₹0Cr | 4.4% | 1.36 | 2.33 | 13.8% |
| FY2026 | ₹0Cr | ₹0Cr | 5.3% | 1.30 | 2.41 | 16.5% |
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.