DuPont Decomposition
Why does KPIGREEN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.7% = 17.7% × 0.27 × 3.26
Latest: FY2026
Profitability
Net Margin
17.7%
18.8% →17.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.27x
0.30x →0.27x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.26x
5.06x →3.26x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 12.4 pp over 5 years. Driven by net margin declining (18.8% → 17.7%), leverage falling (5.06x → 3.26x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 18.8% | 0.30 | 5.06 | 28.1% |
| FY2023 | ₹0Cr | ₹0Cr | 17.0% | 0.51 | 4.87 | 42.5% |
| FY2024 | ₹0Cr | ₹0Cr | 15.8% | 0.42 | 2.91 | 19.3% |
| FY2025 | ₹0Cr | ₹0Cr | 18.4% | 0.36 | 1.98 | 13.2% |
| FY2026 | ₹0Cr | ₹0Cr | 17.7% | 0.27 | 3.26 | 15.7% |
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.