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
36.1% = 80.1% × 0.25 × 1.79
Latest: FY2026
Profitability
Net Margin
80.1%
76.4% →80.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.25x
0.28x →0.25x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.79x
1.82x →1.79x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.2 pp over 4 years. Driven by net margin improving (76.4% → 80.1%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 76.4% | 0.28 | 1.82 | 38.3% |
| FY2024 | ₹0Cr | ₹0Cr | 78.2% | 0.25 | 1.82 | 36.1% |
| FY2025 | ₹0Cr | ₹0Cr | 79.9% | 0.24 | 1.93 | 37.8% |
| FY2026 | ₹0Cr | ₹0Cr | 80.1% | 0.25 | 1.79 | 36.1% |
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.