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
17.9% = 6.2% × 1.22 × 2.36
Latest: FY2025
Profitability
Net Margin
6.2%
-5.0% →6.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.22x
0.29x →1.22x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.36x
3.08x →2.36x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 22.4 pp over 3 years. Driven by net margin improving (-5.0% → 6.2%), asset turnover improving (0.29x → 1.22x), leverage falling (3.08x → 2.36x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -5.0% | 0.29 | 3.08 | -4.5% |
| FY2024 | ₹0Cr | ₹0Cr | 2.9% | 0.29 | 2.49 | 2.1% |
| FY2025 | ₹0Cr | ₹0Cr | 6.2% | 1.22 | 2.36 | 17.9% |
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.