DuPont Decomposition
Why does INCREDIBLE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.6% = 1.7% × 3.71 × 1.34
Latest: FY2025
Profitability
Net Margin
1.7%
0.7% →1.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
3.71x
2.52x →3.71x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.34x
1.66x →1.34x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.7 pp over 4 years. Driven by net margin improving (0.7% → 1.7%), asset turnover improving (2.52x → 3.71x), leverage falling (1.66x → 1.34x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 0.7% | 2.52 | 1.66 | 2.9% |
| FY2023 | ₹0Cr | ₹0Cr | 0.7% | 3.37 | 1.65 | 3.9% |
| FY2024 | ₹0Cr | ₹0Cr | 0.8% | 3.72 | 1.58 | 4.5% |
| FY2025 | ₹0Cr | ₹0Cr | 1.7% | 3.71 | 1.34 | 8.6% |
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.