DuPont Decomposition
Why does FINCABLES earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.8% = 13.5% × 0.83 × 1.14
Latest: FY2025
Profitability
Net Margin
13.5%
14.3% →13.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.83x
0.25x →0.83x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.14x
1.14x →1.14x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 8.8 pp over 3 years. Driven by asset turnover improving (0.25x → 0.83x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 14.3% | 0.25 | 1.14 | 4.0% |
| FY2024 | ₹0Cr | ₹0Cr | 13.3% | 0.25 | 1.14 | 3.8% |
| FY2025 | ₹0Cr | ₹0Cr | 13.5% | 0.83 | 1.14 | 12.8% |
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.