DuPont Decomposition
Why does FLEXITUFF earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
1617.0% = 91.0% × 0.56 × 31.84
Latest: FY2025
Profitability
Net Margin
91.0%
-8.4% →91.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.56x
1.04x →0.56x
Revenue per ₹ of assets
Leverage
Equity Multiplier
31.84x
19.98x →31.84x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1790.9 pp over 2 years. Driven by net margin improving (-8.4% → 91.0%), asset turnover declining (1.04x → 0.56x), leverage rising (19.98x → 31.84x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 2 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -8.4% | 1.04 | 19.98 | -173.9% |
| FY2025 | ₹0Cr | ₹0Cr | 91.0% | 0.56 | 31.84 | 1617.0% |
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.