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
15.7% = 17.6% × 0.79 × 1.13
Latest: FY2026
Profitability
Net Margin
17.6%
13.8% →17.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.79x
1.52x →0.79x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.13x
1.29x →1.13x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 11.4 pp over 5 years. Driven by net margin improving (13.8% → 17.6%), asset turnover declining (1.52x → 0.79x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 13.8% | 1.52 | 1.29 | 27.1% |
| FY2023 | ₹0Cr | ₹0Cr | 20.4% | 1.68 | 1.17 | 40.1% |
| FY2024 | ₹0Cr | ₹0Cr | 19.4% | 1.01 | 1.10 | 21.4% |
| FY2025 | ₹0Cr | ₹0Cr | 18.1% | 0.90 | 1.09 | 17.9% |
| FY2026 | ₹0Cr | ₹0Cr | 17.6% | 0.79 | 1.13 | 15.7% |
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.