DuPont Decomposition
Why does FIEMIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
19.7% = 8.5% × 1.69 × 1.37
Latest: FY2025
Profitability
Net Margin
8.5%
8.7% →8.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.69x
0.41x →1.69x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.37x
1.38x →1.37x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 14.7 pp over 3 years. Driven by asset turnover improving (0.41x → 1.69x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 8.7% | 0.41 | 1.38 | 5.0% |
| FY2024 | ₹0Cr | ₹0Cr | 8.3% | 0.46 | 1.37 | 5.2% |
| FY2025 | ₹0Cr | ₹0Cr | 8.5% | 1.69 | 1.37 | 19.7% |
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.