DuPont Decomposition
Why does FOODSIN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.8% = 4.4% × 0.74 × 2.39
Latest: FY2025
Profitability
Net Margin
4.4%
2.4% →4.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.74x
1.10x →0.74x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.39x
2.92x →2.39x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~8%. Driven by net margin improving (2.4% → 4.4%), asset turnover declining (1.10x → 0.74x), leverage falling (2.92x → 2.39x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.4% | 1.10 | 2.92 | 7.8% |
| FY2023 | ₹0Cr | ₹0Cr | 4.8% | 1.22 | 2.60 | 15.2% |
| FY2024 | ₹0Cr | ₹0Cr | 3.8% | 0.95 | 2.58 | 9.2% |
| FY2025 | ₹0Cr | ₹0Cr | 4.4% | 0.74 | 2.39 | 7.8% |
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.