DuPont Decomposition
Why does EXCELSOFT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.3% = 14.9% × 0.50 × 1.27
Latest: FY2025
Profitability
Net Margin
14.9%
11.5% →14.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.50x
0.45x →0.50x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.27x
1.57x →1.27x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.3 pp over 3 years. Driven by net margin improving (11.5% → 14.9%), leverage falling (1.57x → 1.27x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 11.5% | 0.45 | 1.57 | 8.1% |
| FY2024 | ₹0Cr | ₹0Cr | 6.4% | 0.47 | 1.42 | 4.3% |
| FY2025 | ₹0Cr | ₹0Cr | 14.9% | 0.50 | 1.27 | 9.3% |
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.