DuPont Decomposition
Why does IEX earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
37.8% = 80.0% × 0.24 × 1.93
Latest: FY2025
Profitability
Net Margin
80.0%
82.5% →80.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.24x
0.07x →0.24x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.93x
1.82x →1.93x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 26.7 pp over 3 years. Driven by net margin declining (82.5% → 80.0%), asset turnover improving (0.07x → 0.24x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 82.5% | 0.07 | 1.82 | 11.1% |
| FY2024 | ₹0Cr | ₹0Cr | 79.7% | 0.07 | 1.82 | 9.9% |
| FY2025 | ₹0Cr | ₹0Cr | 80.0% | 0.24 | 1.93 | 37.8% |
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.