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
11.4% = 9.6% × 0.96 × 1.24
Latest: FY2025
Profitability
Net Margin
9.6%
20.3% →9.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.96x
0.65x →0.96x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.24x
1.80x →1.24x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 12.3 pp over 4 years. Driven by net margin declining (20.3% → 9.6%), asset turnover improving (0.65x → 0.96x), leverage falling (1.80x → 1.24x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 20.3% | 0.65 | 1.80 | 23.7% |
| 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% |
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.