DuPont Decomposition
Why does EUROPRATIK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
32.6% = 26.9% × 1.04 × 1.17
Latest: FY2025
Profitability
Net Margin
26.9%
21.0% →26.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.04x
1.52x →1.04x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.17x
1.16x →1.17x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 4.6 pp over 4 years. Driven by net margin improving (21.0% → 26.9%), asset turnover declining (1.52x → 1.04x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 21.0% | 1.52 | 1.16 | 37.2% |
| FY2023 | ₹0Cr | ₹0Cr | 22.6% | 1.66 | 1.22 | 45.8% |
| FY2024 | ₹0Cr | ₹0Cr | 28.4% | 1.27 | 1.12 | 40.4% |
| FY2025 | ₹0Cr | ₹0Cr | 26.9% | 1.04 | 1.17 | 32.6% |
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.