DuPont Decomposition
Why does FLUOROCHEM earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.3% = 11.6% × 0.42 × 1.51
Latest: FY2026
Profitability
Net Margin
11.6%
19.9% →11.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.42x
0.57x →0.42x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.51x
1.62x →1.51x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 11.2 pp over 5 years. Driven by net margin declining (19.9% → 11.6%), asset turnover declining (0.57x → 0.42x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 19.9% | 0.57 | 1.62 | 18.5% |
| FY2023 | ₹0Cr | ₹0Cr | 23.8% | 0.67 | 1.52 | 24.1% |
| FY2024 | ₹0Cr | ₹0Cr | 10.4% | 0.45 | 1.56 | 7.3% |
| FY2025 | ₹0Cr | ₹0Cr | 11.5% | 0.45 | 1.46 | 7.5% |
| FY2026 | ₹0Cr | ₹0Cr | 11.6% | 0.42 | 1.51 | 7.3% |
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)
DuPont decomposition from audited annual financials. Factual analysis, not investment advice.