DuPont Decomposition
Why does KROSS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.1% = 7.9% × 1.06 × 1.32
Latest: FY2025
Profitability
Net Margin
7.9%
4.4% →7.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.06x
1.39x →1.06x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.32x
2.72x →1.32x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 5.8 pp over 4 years. Driven by net margin improving (4.4% → 7.9%), asset turnover declining (1.39x → 1.06x), leverage falling (2.72x → 1.32x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.4% | 1.39 | 2.72 | 16.8% |
| FY2023 | ₹0Cr | ₹0Cr | 6.7% | 1.84 | 2.44 | 30.3% |
| FY2024 | ₹0Cr | ₹0Cr | 7.4% | 1.71 | 2.40 | 30.6% |
| FY2025 | ₹0Cr | ₹0Cr | 7.9% | 1.06 | 1.32 | 11.1% |
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.