DuPont Decomposition
Why does FINPIPE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.1% = 19.5% × 0.56 × 1.21
Latest: FY2025
Profitability
Net Margin
19.5%
14.6% →19.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.56x
0.18x →0.56x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.21x
1.28x →1.21x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 9.7 pp over 3 years. Driven by net margin improving (14.6% → 19.5%), asset turnover improving (0.18x → 0.56x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 14.6% | 0.18 | 1.28 | 3.4% |
| FY2024 | ₹0Cr | ₹0Cr | 13.3% | 0.18 | 1.25 | 2.9% |
| FY2025 | ₹0Cr | ₹0Cr | 19.5% | 0.56 | 1.21 | 13.1% |
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.