DuPont Decomposition
Why does KMEW earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
22.6% = 24.8% × 0.50 × 1.81
Latest: FY2025
Profitability
Net Margin
24.8%
33.3% →24.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.50x
0.65x →0.50x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.81x
1.88x →1.81x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 18.2 pp over 4 years. Driven by net margin declining (33.3% → 24.8%), asset turnover declining (0.65x → 0.50x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 33.3% | 0.65 | 1.88 | 40.9% |
| FY2023 | ₹0Cr | ₹0Cr | 23.3% | 0.96 | 1.53 | 34.4% |
| FY2024 | ₹0Cr | ₹0Cr | 18.8% | 0.63 | 1.52 | 18.0% |
| FY2025 | ₹0Cr | ₹0Cr | 24.8% | 0.50 | 1.81 | 22.6% |
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.