DuPont Decomposition
Why does FINKURVE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.4% = 12.6% × 0.29 × 2.31
Latest: FY2025
Profitability
Net Margin
12.6%
95.5% →12.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.29x
0.12x →0.29x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.31x
1.18x →2.31x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 5.2 pp over 4 years. Driven by net margin declining (95.5% → 12.6%), asset turnover improving (0.12x → 0.29x), leverage rising (1.18x → 2.31x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 95.5% | 0.12 | 1.18 | 13.7% |
| FY2023 | ₹0Cr | ₹0Cr | 28.4% | 0.21 | 1.36 | 8.3% |
| FY2024 | ₹0Cr | ₹0Cr | 18.0% | 0.31 | 1.50 | 8.5% |
| FY2025 | ₹0Cr | ₹0Cr | 12.6% | 0.29 | 2.31 | 8.4% |
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.