DuPont Decomposition
Why does EVEREADY earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
27.5% = 11.8% × 1.20 × 1.95
Latest: FY2026
Profitability
Net Margin
11.8%
3.9% →11.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.20x
1.27x →1.20x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.95x
3.24x →1.95x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 11.5 pp over 5 years. Driven by net margin improving (3.9% → 11.8%), leverage falling (3.24x → 1.95x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.9% | 1.27 | 3.24 | 16.0% |
| FY2023 | ₹0Cr | ₹0Cr | 2.1% | 1.34 | 3.08 | 8.7% |
| FY2024 | ₹0Cr | ₹0Cr | 5.1% | 1.35 | 2.49 | 17.3% |
| FY2025 | ₹0Cr | ₹0Cr | 6.1% | 1.24 | 2.36 | 17.9% |
| FY2026 | ₹0Cr | ₹0Cr | 11.8% | 1.20 | 1.95 | 27.5% |
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.