DuPont Decomposition
Why does INFOBEAN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
21.0% = 16.9% × 1.05 × 1.18
Latest: FY2026
Profitability
Net Margin
16.9%
21.0% →16.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.05x
0.65x →1.05x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.18x
1.80x →1.18x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.6 pp over 5 years. Driven by net margin declining (21.0% → 16.9%), asset turnover improving (0.65x → 1.05x), leverage falling (1.80x → 1.18x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 21.0% | 0.65 | 1.80 | 24.6% |
| FY2023 | ₹0Cr | ₹0Cr | 9.3% | 0.91 | 1.56 | 13.2% |
| FY2024 | ₹0Cr | ₹0Cr | 6.1% | 0.91 | 1.37 | 7.6% |
| FY2025 | ₹0Cr | ₹0Cr | 9.6% | 0.96 | 1.24 | 11.4% |
| FY2026 | ₹0Cr | ₹0Cr | 16.9% | 1.05 | 1.18 | 21.0% |
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.