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
12.2% = 18.4% × 0.36 × 1.82
Latest: FY2025
Profitability
Net Margin
18.4%
17.4% →18.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.36x
0.15x →0.36x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.82x
4.87x →1.82x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~12%. Driven by asset turnover improving (0.15x → 0.36x), leverage falling (4.87x → 1.82x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 17.4% | 0.15 | 4.87 | 12.3% |
| FY2024 | ₹0Cr | ₹0Cr | 14.9% | 0.12 | 2.91 | 5.2% |
| FY2025 | ₹0Cr | ₹0Cr | 18.4% | 0.36 | 1.82 | 12.2% |
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.