DuPont Decomposition
Why does INDOBORAX earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.0% = 23.3% × 0.53 × 1.05
Latest: FY2026
Profitability
Net Margin
23.3%
20.7% →23.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.53x
0.79x →0.53x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.05x
1.07x →1.05x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 4.6 pp over 5 years. Driven by net margin improving (20.7% → 23.3%), asset turnover declining (0.79x → 0.53x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 20.7% | 0.79 | 1.07 | 17.6% |
| FY2023 | ₹0Cr | ₹0Cr | 22.5% | 0.82 | 1.08 | 19.9% |
| FY2024 | ₹0Cr | ₹0Cr | 20.4% | 0.61 | 1.06 | 13.3% |
| FY2025 | ₹0Cr | ₹0Cr | 24.3% | 0.49 | 1.06 | 12.7% |
| FY2026 | ₹0Cr | ₹0Cr | 23.3% | 0.53 | 1.05 | 13.0% |
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.