DuPont Decomposition
Why does KIRLOSENG earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.9% = 7.5% × 0.71 × 3.00
Latest: FY2026
Profitability
Net Margin
7.5%
4.4% →7.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.71x
0.79x →0.71x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.00x
2.42x →3.00x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.5 pp over 5 years. Driven by net margin improving (4.4% → 7.5%), leverage rising (2.42x → 3.00x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.4% | 0.79 | 2.42 | 8.4% |
| FY2023 | ₹0Cr | ₹0Cr | 6.7% | 0.74 | 2.92 | 14.4% |
| FY2024 | ₹0Cr | ₹0Cr | 7.6% | 0.71 | 3.09 | 16.5% |
| FY2025 | ₹0Cr | ₹0Cr | 7.7% | 0.60 | 3.40 | 15.8% |
| FY2026 | ₹0Cr | ₹0Cr | 7.5% | 0.71 | 3.00 | 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.