DuPont Decomposition
Why does FILATEX earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.2% = 4.4% × 1.68 × 1.64
Latest: FY2026
Profitability
Net Margin
4.4%
7.9% →4.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.68x
1.89x →1.68x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.64x
1.86x →1.64x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 15.7 pp over 5 years. Driven by net margin declining (7.9% → 4.4%), asset turnover declining (1.89x → 1.68x), leverage falling (1.86x → 1.64x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.9% | 1.89 | 1.86 | 27.9% |
| FY2023 | ₹0Cr | ₹0Cr | 2.1% | 2.03 | 1.92 | 8.2% |
| FY2024 | ₹0Cr | ₹0Cr | 2.6% | 2.04 | 1.74 | 9.2% |
| FY2025 | ₹0Cr | ₹0Cr | 3.1% | 1.87 | 1.71 | 10.1% |
| FY2026 | ₹0Cr | ₹0Cr | 4.4% | 1.68 | 1.64 | 12.2% |
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.