DuPont Decomposition
Why does KSOLVES earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
116.8% = 21.1% × 2.62 × 2.11
Latest: FY2026
Profitability
Net Margin
21.1%
33.8% →21.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.62x
1.99x →2.62x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.11x
1.42x →2.11x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 21.5 pp over 5 years. Driven by net margin declining (33.8% → 21.1%), asset turnover improving (1.99x → 2.62x), leverage rising (1.42x → 2.11x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 33.8% | 1.99 | 1.42 | 95.3% |
| FY2023 | ₹0Cr | ₹0Cr | 31.6% | 2.30 | 1.52 | 110.4% |
| FY2024 | ₹0Cr | ₹0Cr | 31.4% | 2.75 | 1.66 | 143.3% |
| FY2025 | ₹0Cr | ₹0Cr | 25.0% | 2.44 | 2.72 | 165.4% |
| FY2026 | ₹0Cr | ₹0Cr | 21.1% | 2.62 | 2.11 | 116.8% |
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.