DuPont Decomposition
Why does LANDMARK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
2.9% = 0.4% × 2.04 × 3.38
Latest: FY2025
Profitability
Net Margin
0.4%
2.3% →0.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.04x
2.69x →2.04x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.38x
4.37x →3.38x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 23.5 pp over 4 years. Driven by net margin declining (2.2% → 0.4%), asset turnover declining (2.69x → 2.04x), leverage falling (4.37x → 3.38x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.3% | 2.69 | 4.37 | 26.4% |
| FY2023 | ₹0Cr | ₹0Cr | 2.6% | 4.48 | 1.54 | 17.8% |
| FY2024 | ₹0Cr | ₹0Cr | 1.8% | 2.04 | 2.88 | 10.4% |
| FY2025 | ₹0Cr | ₹0Cr | 0.4% | 2.04 | 3.38 | 2.9% |
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.