DuPont Decomposition
Why does ICEMAKE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
18.6% = 4.8% × 1.30 × 2.96
Latest: FY2025
Profitability
Net Margin
4.8%
3.5% →4.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.30x
1.65x →1.30x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.96x
2.03x →2.96x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.8 pp over 4 years. Driven by net margin improving (3.5% → 4.8%), asset turnover declining (1.65x → 1.30x), leverage rising (2.03x → 2.96x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.5% | 1.65 | 2.03 | 11.9% |
| FY2023 | ₹0Cr | ₹0Cr | 6.7% | 1.96 | 1.96 | 25.6% |
| FY2024 | ₹0Cr | ₹0Cr | 6.9% | 1.79 | 2.03 | 25.2% |
| FY2025 | ₹0Cr | ₹0Cr | 4.8% | 1.30 | 2.96 | 18.6% |
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.