DuPont Decomposition
Why does IMFA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.1% = 14.9% × 0.80 × 1.35
Latest: FY2025
Profitability
Net Margin
14.9%
10.1% →14.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.80x
0.24x →0.80x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.35x
1.42x →1.35x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 12.6 pp over 3 years. Driven by net margin improving (10.1% → 14.9%), asset turnover improving (0.24x → 0.80x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 10.1% | 0.24 | 1.42 | 3.4% |
| FY2024 | ₹0Cr | ₹0Cr | 9.1% | 0.25 | 1.34 | 3.0% |
| FY2025 | ₹0Cr | ₹0Cr | 14.9% | 0.80 | 1.35 | 16.1% |
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.