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% = 20.5% × 0.47 × 1.16
Latest: FY2025
Profitability
Net Margin
20.5%
24.3% →20.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.47x
0.11x →0.47x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.16x
1.05x →1.16x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 8.5 pp over 3 years. Driven by net margin declining (24.2% → 20.5%), asset turnover improving (0.11x → 0.47x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 24.3% | 0.11 | 1.05 | 2.8% |
| FY2024 | ₹0Cr | ₹0Cr | 38.0% | 0.07 | 1.04 | 2.6% |
| FY2025 | ₹0Cr | ₹0Cr | 20.5% | 0.47 | 1.16 | 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.