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
11.7% = 11.3% × 0.90 × 1.15
Latest: FY2026
Profitability
Net Margin
11.3%
16.2% →11.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.90x
0.82x →0.90x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.15x
1.15x →1.15x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.5 pp over 5 years. Driven by net margin declining (16.2% → 11.3%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 16.2% | 0.82 | 1.15 | 15.3% |
| FY2023 | ₹0Cr | ₹0Cr | 11.4% | 0.89 | 1.14 | 11.5% |
| FY2024 | ₹0Cr | ₹0Cr | 13.2% | 0.88 | 1.14 | 13.2% |
| FY2025 | ₹0Cr | ₹0Cr | 13.2% | 0.85 | 1.14 | 12.8% |
| FY2026 | ₹0Cr | ₹0Cr | 11.3% | 0.90 | 1.15 | 11.7% |
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.