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

4735.3% = 91.0% × 0.56 × 93.24

Latest: FY2025

Profitability

Net Margin

91.0%

91.0% →91.0%

How much profit per ₹ of revenue

Efficiency

Asset Turnover

0.56x

0.56x →0.56x

Revenue per ₹ of assets

Leverage

Equity Multiplier

93.24x

93.24x →93.24x

Assets funded by equity vs debt

Historical Decomposition

Last 1 years

YearRevenuePATNet MarginAsset TOLeverageROE
FY2025₹0Cr₹0Cr91.0%0.5693.244735.3%

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)

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DuPont decomposition from audited annual financials. Factual analysis, not investment advice.