DuPont Decomposition
Why does INVENTURE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.8% = 4.7% × 0.12 × 1.37
Latest: FY2025
Profitability
Net Margin
4.7%
37.1% →4.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.12x
0.14x →0.12x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.37x
1.38x →1.37x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 6.2 pp over 4 years. Driven by net margin declining (37.1% → 4.7%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 37.1% | 0.14 | 1.38 | 7.0% |
| FY2023 | ₹0Cr | ₹0Cr | 31.6% | 0.11 | 1.33 | 4.4% |
| FY2024 | ₹0Cr | ₹0Cr | 23.4% | 0.16 | 1.48 | 5.4% |
| FY2025 | ₹0Cr | ₹0Cr | 4.7% | 0.12 | 1.37 | 0.8% |
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.