DuPont Decomposition
Why does FINEORG earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
17.9% = 18.1% × 0.90 × 1.09
Latest: FY2025
Profitability
Net Margin
18.1%
25.1% →18.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.90x
0.33x →0.90x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.09x
1.17x →1.09x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 8.2 pp over 3 years. Driven by net margin declining (25.1% → 18.1%), asset turnover improving (0.33x → 0.90x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 25.1% | 0.33 | 1.17 | 9.7% |
| FY2024 | ₹0Cr | ₹0Cr | 20.9% | 0.26 | 1.10 | 6.0% |
| FY2025 | ₹0Cr | ₹0Cr | 18.1% | 0.90 | 1.09 | 17.9% |
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.