DuPont Decomposition
Why does LATTEYS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.9% = 3.0% × 1.42 × 3.46
Latest: FY2026
Profitability
Net Margin
3.0%
2.5% →3.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.42x
0.98x →1.42x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.46x
2.68x →3.46x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 8.3 pp over 5 years. Driven by asset turnover improving (0.98x → 1.42x), leverage rising (2.68x → 3.46x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.5% | 0.98 | 2.68 | 6.6% |
| FY2023 | ₹0Cr | ₹0Cr | 2.5% | 1.20 | 2.60 | 7.9% |
| FY2024 | ₹0Cr | ₹0Cr | 2.4% | 1.30 | 2.65 | 8.1% |
| FY2025 | ₹0Cr | ₹0Cr | 2.3% | 1.74 | 2.28 | 8.9% |
| FY2026 | ₹0Cr | ₹0Cr | 3.0% | 1.42 | 3.46 | 14.9% |
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.