DuPont Decomposition
Why does KEYFINSERV earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.5% = 64.1% × 0.15 × 1.10
Latest: FY2025
Profitability
Net Margin
64.1%
92.2% →64.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.15x
0.13x →0.15x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.10x
1.38x →1.10x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 5.4 pp over 4 years. Driven by net margin declining (92.2% → 64.1%), leverage falling (1.38x → 1.10x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 92.2% | 0.13 | 1.38 | 15.9% |
| FY2023 | ₹0Cr | ₹-0Cr | -11.2% | 0.13 | 1.12 | -1.7% |
| FY2024 | ₹0Cr | ₹0Cr | 79.1% | 0.24 | 1.13 | 21.6% |
| FY2025 | ₹0Cr | ₹0Cr | 64.1% | 0.15 | 1.10 | 10.5% |
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.