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
15.9% = 9.0% × 0.93 × 1.91
Latest: FY2025
Profitability
Net Margin
9.0%
7.3% →9.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.93x
1.03x →0.93x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.91x
1.92x →1.91x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.4 pp over 3 years. Driven by net margin improving (7.3% → 9.0%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 7.3% | 1.03 | 1.92 | 14.5% |
| FY2024 | ₹0Cr | ₹0Cr | 10.0% | 0.92 | 1.93 | 17.7% |
| FY2025 | ₹0Cr | ₹0Cr | 9.0% | 0.93 | 1.91 | 15.9% |
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.