DuPont Decomposition
Why does INNOVISION earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.6% = 3.8% × 2.07 × 1.61
Latest: FY2026
Profitability
Net Margin
3.8%
3.5% →3.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.07x
2.36x →2.07x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.61x
2.69x →1.61x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 9.5 pp over 4 years. Driven by asset turnover declining (2.36x → 2.07x), leverage falling (2.69x → 1.61x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 3.5% | 2.36 | 2.69 | 22.1% |
| FY2024 | ₹0Cr | ₹0Cr | 2.0% | 3.25 | 2.99 | 19.8% |
| FY2025 | ₹0Cr | ₹0Cr | 3.3% | 4.05 | 2.68 | 35.8% |
| FY2026 | ₹0Cr | ₹0Cr | 3.8% | 2.07 | 1.61 | 12.6% |
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.