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
11.6% = 16.7% × 0.58 × 1.21
Latest: FY2026
Profitability
Net Margin
16.7%
12.1% →16.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.58x
0.44x →0.58x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.21x
1.18x →1.21x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.3 pp over 5 years. Driven by net margin improving (12.1% → 16.7%), asset turnover improving (0.44x → 0.58x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 12.1% | 0.44 | 1.18 | 6.4% |
| FY2023 | ₹0Cr | ₹0Cr | 13.0% | 0.48 | 1.18 | 7.3% |
| FY2024 | ₹0Cr | ₹0Cr | 13.9% | 0.51 | 1.19 | 8.5% |
| FY2025 | ₹0Cr | ₹0Cr | 21.8% | 0.51 | 1.22 | 13.6% |
| FY2026 | ₹0Cr | ₹0Cr | 16.7% | 0.58 | 1.21 | 11.6% |
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.