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
10.1% = 3.2% × 1.86 × 1.71
Latest: FY2025
Profitability
Net Margin
3.2%
2.1% →3.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.86x
2.03x →1.86x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.71x
1.92x →1.71x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.9 pp over 3 years. Driven by net margin improving (2.1% → 3.2%), asset turnover declining (2.03x → 1.86x), leverage falling (1.92x → 1.71x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| 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 | 3.2% | 1.86 | 1.71 | 10.1% |
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.