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
16.0% = 7.8% × 0.60 × 3.43
Latest: FY2025
Profitability
Net Margin
7.8%
6.7% →7.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.60x
1.49x →0.60x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.43x
1.43x →3.43x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.8 pp over 3 years. Driven by net margin improving (6.7% → 7.8%), asset turnover declining (1.49x → 0.60x), leverage rising (1.43x → 3.43x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 6.7% | 1.49 | 1.43 | 14.3% |
| FY2024 | ₹0Cr | ₹0Cr | 7.6% | 1.49 | 1.50 | 16.9% |
| FY2025 | ₹0Cr | ₹0Cr | 7.8% | 0.60 | 3.43 | 16.0% |
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.