DuPont Decomposition
Why does FIBERWEB earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.5% = 14.8% × 0.53 × 1.09
Latest: FY2025
Profitability
Net Margin
14.8%
11.9% →14.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.53x
0.59x →0.53x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.09x
1.04x →1.09x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.2 pp over 4 years. Driven by net margin improving (11.9% → 14.8%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.9% | 0.59 | 1.04 | 7.3% |
| FY2023 | ₹0Cr | ₹-0Cr | -0.5% | 0.39 | 1.10 | -0.2% |
| FY2024 | ₹0Cr | ₹0Cr | 8.5% | 0.50 | 1.06 | 4.5% |
| FY2025 | ₹0Cr | ₹0Cr | 14.8% | 0.53 | 1.09 | 8.5% |
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.