DuPont Decomposition
Why does IONEXCHANG earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.7% = 4.9% × 0.86 × 2.52
Latest: FY2026
Profitability
Net Margin
4.9%
10.4% →4.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.86x
0.96x →0.86x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.52x
2.48x →2.52x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 14.2 pp over 5 years. Driven by net margin declining (10.4% → 4.9%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 10.4% | 0.96 | 2.48 | 24.8% |
| FY2023 | ₹0Cr | ₹0Cr | 9.9% | 1.02 | 2.33 | 23.6% |
| FY2024 | ₹0Cr | ₹0Cr | 8.4% | 0.95 | 2.41 | 19.3% |
| FY2025 | ₹0Cr | ₹0Cr | 7.6% | 0.92 | 2.47 | 17.2% |
| FY2026 | ₹0Cr | ₹0Cr | 4.9% | 0.86 | 2.52 | 10.7% |
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.