DuPont Decomposition
Why does LAOPALA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.3% = 29.9% × 0.35 × 1.09
Latest: FY2026
Profitability
Net Margin
29.9%
27.3% →29.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.35x
0.38x →0.35x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.09x
1.14x →1.09x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~11%. Driven by net margin improving (27.3% → 29.9%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 27.3% | 0.38 | 1.14 | 11.8% |
| FY2023 | ₹0Cr | ₹0Cr | 27.3% | 0.50 | 1.16 | 15.9% |
| FY2024 | ₹0Cr | ₹0Cr | 35.2% | 0.39 | 1.09 | 15.0% |
| FY2025 | ₹0Cr | ₹0Cr | 29.1% | 0.37 | 1.09 | 11.7% |
| FY2026 | ₹0Cr | ₹0Cr | 29.9% | 0.35 | 1.09 | 11.3% |
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.