DuPont Decomposition
Why does KRISHIVAL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.6% = 6.7% × 1.17 × 1.22
Latest: FY2025
Profitability
Net Margin
6.7%
6.4% →6.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.17x
0.95x →1.17x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.22x
1.29x →1.22x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.7 pp over 4 years. Driven by asset turnover improving (0.95x → 1.17x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.4% | 0.95 | 1.29 | 7.9% |
| FY2023 | ₹0Cr | ₹0Cr | 9.5% | 0.92 | 1.18 | 10.3% |
| FY2024 | ₹0Cr | ₹0Cr | 9.1% | 0.78 | 1.08 | 7.7% |
| FY2025 | ₹0Cr | ₹0Cr | 6.7% | 1.17 | 1.22 | 9.6% |
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.