DuPont Decomposition
Why does FACT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-2.9% = -0.7% × 0.96 × 4.42
Latest: FY2026
Profitability
Net Margin
-0.7%
12.7% →-0.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.96x
0.57x →0.96x
Revenue per ₹ of assets
Leverage
Equity Multiplier
4.42x
7.16x →4.42x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 55.2 pp over 5 years. Driven by net margin declining (12.7% → -0.7%), asset turnover improving (0.57x → 0.96x), leverage falling (7.16x → 4.42x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 12.7% | 0.57 | 7.16 | 52.3% |
| FY2023 | ₹0Cr | ₹0Cr | 19.4% | 0.58 | 4.27 | 48.1% |
| FY2024 | ₹0Cr | ₹0Cr | 4.4% | 0.51 | 4.27 | 9.4% |
| FY2025 | ₹0Cr | ₹0Cr | 1.0% | 0.68 | 4.36 | 3.0% |
| FY2026 | ₹0Cr | ₹-0Cr | -0.7% | 0.96 | 4.42 | -2.9% |
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.