DuPont Decomposition
Why does IZMO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.6% = 21.8% × 0.51 × 1.22
Latest: FY2025
Profitability
Net Margin
21.8%
12.1% →21.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.51x
0.44x →0.51x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.22x
1.18x →1.22x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.2 pp over 4 years. Driven by net margin improving (12.1% → 21.8%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 12.1% | 0.44 | 1.18 | 6.4% |
| FY2023 | ₹0Cr | ₹0Cr | 19.0% | 0.14 | 1.18 | 3.0% |
| FY2024 | ₹0Cr | ₹0Cr | 18.0% | 0.14 | 1.19 | 3.0% |
| FY2025 | ₹0Cr | ₹0Cr | 21.8% | 0.51 | 1.22 | 13.6% |
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.