DuPont Decomposition
Why does LALPATHLAB earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
22.1% = 19.8% × 0.91 × 1.23
Latest: FY2025
Profitability
Net Margin
19.8%
11.6% →19.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.91x
0.21x →0.91x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.23x
1.43x →1.23x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 18.7 pp over 3 years. Driven by net margin improving (11.6% → 19.8%), asset turnover improving (0.21x → 0.91x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 11.6% | 0.21 | 1.43 | 3.4% |
| FY2024 | ₹0Cr | ₹0Cr | 18.7% | 0.20 | 1.27 | 4.7% |
| FY2025 | ₹0Cr | ₹0Cr | 19.8% | 0.91 | 1.23 | 22.1% |
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.