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
6.7% = 11.6% × 0.47 × 1.22
Latest: FY2026
Profitability
Net Margin
11.6%
11.6% →11.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.47x
0.31x →0.47x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.22x
1.44x →1.22x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.6 pp over 4 years. Driven by asset turnover improving (0.31x → 0.47x), leverage falling (1.44x → 1.22x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 11.6% | 0.31 | 1.44 | 5.1% |
| FY2024 | ₹0Cr | ₹0Cr | 13.3% | 0.29 | 1.46 | 5.7% |
| FY2025 | ₹0Cr | ₹0Cr | 14.3% | 0.28 | 1.41 | 5.7% |
| FY2026 | ₹0Cr | ₹0Cr | 11.6% | 0.47 | 1.22 | 6.7% |
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.