DuPont Decomposition
Why does IGARASHI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.2% = 3.0% × 1.05 × 1.66
Latest: FY2025
Profitability
Net Margin
3.0%
0.8% →3.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.05x
0.90x →1.05x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.66x
1.65x →1.66x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.0 pp over 3 years. Driven by net margin improving (0.8% → 3.0%), asset turnover improving (0.90x → 1.05x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 0.8% | 0.90 | 1.65 | 1.2% |
| FY2024 | ₹0Cr | ₹0Cr | 1.3% | 0.94 | 1.73 | 2.1% |
| FY2025 | ₹0Cr | ₹0Cr | 3.0% | 1.05 | 1.66 | 5.2% |
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.