DuPont Decomposition
Why does INSPIRISYS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
40.9% = 8.6% × 1.32 × 3.58
Latest: FY2026
Profitability
Net Margin
8.6%
-3.9% →8.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.32x
1.71x →1.32x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.58x
252.68x →3.58x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1729.5 pp over 4 years. Driven by net margin improving (-3.9% → 8.6%), asset turnover declining (1.71x → 1.32x), leverage falling (252.68x → 3.58x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -3.9% | 1.71 | 252.68 | -1688.6% |
| FY2024 | ₹0Cr | ₹0Cr | 0.8% | 1.86 | 8.98 | 12.5% |
| FY2025 | ₹0Cr | ₹0Cr | 5.5% | 1.45 | 4.56 | 36.8% |
| FY2026 | ₹0Cr | ₹0Cr | 8.6% | 1.32 | 3.58 | 40.9% |
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.