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
12.7% = 24.3% × 0.49 × 1.06
Latest: FY2025
Profitability
Net Margin
24.3%
22.6% →24.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.49x
0.20x →0.49x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.06x
1.08x →1.06x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.7 pp over 3 years. Driven by net margin improving (22.6% → 24.2%), asset turnover improving (0.20x → 0.49x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 22.6% | 0.20 | 1.08 | 5.0% |
| FY2024 | ₹0Cr | ₹0Cr | 25.2% | 0.15 | 1.06 | 3.9% |
| FY2025 | ₹0Cr | ₹0Cr | 24.3% | 0.49 | 1.06 | 12.7% |
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.