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
6.4% = 0.8% × 2.47 × 3.39
Latest: FY2026
Profitability
Net Margin
0.8%
2.3% →0.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.47x
2.69x →2.47x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.39x
4.40x →3.39x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 20.1 pp over 5 years. Driven by net margin declining (2.2% → 0.8%), asset turnover declining (2.69x → 2.47x), leverage falling (4.40x → 3.39x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.3% | 2.69 | 4.40 | 26.5% |
| FY2023 | ₹0Cr | ₹0Cr | 2.6% | 2.61 | 2.68 | 18.0% |
| FY2024 | ₹0Cr | ₹0Cr | 1.8% | 2.04 | 2.88 | 10.4% |
| FY2025 | ₹0Cr | ₹0Cr | 0.4% | 2.13 | 3.41 | 2.9% |
| FY2026 | ₹0Cr | ₹0Cr | 0.8% | 2.47 | 3.39 | 6.4% |
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.