DuPont Decomposition
Why does LATENTVIEW earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.3% = 18.7% × 0.51 × 1.19
Latest: FY2026
Profitability
Net Margin
18.7%
31.8% →18.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.51x
0.37x →0.51x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.19x
1.07x →1.19x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.3 pp over 5 years. Driven by net margin declining (31.8% → 18.7%), asset turnover improving (0.37x → 0.51x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 31.8% | 0.37 | 1.07 | 12.6% |
| FY2023 | ₹0Cr | ₹0Cr | 28.9% | 0.43 | 1.05 | 12.9% |
| FY2024 | ₹0Cr | ₹0Cr | 24.8% | 0.44 | 1.06 | 11.5% |
| FY2025 | ₹0Cr | ₹0Cr | 20.5% | 0.47 | 1.19 | 11.6% |
| FY2026 | ₹0Cr | ₹0Cr | 18.7% | 0.51 | 1.19 | 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.