DuPont Decomposition
Why does FOSECOIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.0% = 11.3% × 0.47 × 1.32
Latest: FY2026
Profitability
Net Margin
11.3%
11.3% →11.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.47x
1.18x →0.47x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.32x
1.44x →1.32x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 12.2 pp over 4 years. Driven by asset turnover declining (1.18x → 0.47x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 11.3% | 1.18 | 1.44 | 19.2% |
| FY2024 | ₹0Cr | ₹0Cr | 15.3% | 1.14 | 1.46 | 25.5% |
| FY2025 | ₹0Cr | ₹0Cr | 13.9% | 1.08 | 1.41 | 21.3% |
| FY2026 | ₹0Cr | ₹0Cr | 11.3% | 0.47 | 1.32 | 7.0% |
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.