DuPont Decomposition
Why does INTLCONV earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.1% = 32.1% × 0.37 × 1.34
Latest: FY2026
Profitability
Net Margin
32.1%
8.1% →32.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.37x
0.66x →0.37x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.34x
1.41x →1.34x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 8.6 pp over 5 years. Driven by net margin improving (8.1% → 32.1%), asset turnover declining (0.66x → 0.37x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.1% | 0.66 | 1.41 | 7.5% |
| FY2023 | ₹0Cr | ₹0Cr | 13.4% | 0.69 | 1.45 | 13.4% |
| FY2024 | ₹0Cr | ₹0Cr | 46.7% | 0.30 | 1.61 | 22.9% |
| FY2025 | ₹0Cr | ₹0Cr | 60.4% | 0.30 | 1.40 | 25.4% |
| FY2026 | ₹0Cr | ₹0Cr | 32.1% | 0.37 | 1.34 | 16.1% |
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.