DuPont Decomposition
Why does IRISDOREME earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.4% = 8.5% × 0.94 × 1.44
Latest: FY2026
Profitability
Net Margin
8.5%
9.2% →8.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.94x
1.18x →0.94x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.44x
1.93x →1.44x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 9.4 pp over 5 years. Driven by asset turnover declining (1.18x → 0.94x), leverage falling (1.93x → 1.44x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.2% | 1.18 | 1.93 | 20.8% |
| FY2023 | ₹0Cr | ₹0Cr | 7.3% | 1.03 | 1.92 | 14.5% |
| FY2024 | ₹0Cr | ₹0Cr | 10.1% | 0.91 | 1.93 | 17.7% |
| FY2025 | ₹0Cr | ₹0Cr | 9.0% | 0.93 | 1.91 | 15.9% |
| FY2026 | ₹0Cr | ₹0Cr | 8.5% | 0.94 | 1.44 | 11.4% |
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.