DuPont Decomposition
Why does LAURUSLABS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.8% = 6.5% × 0.59 × 2.03
Latest: FY2025
Profitability
Net Margin
6.5%
8.0% →6.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.59x
0.18x →0.59x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.03x
1.72x →2.03x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.3 pp over 3 years. Driven by net margin declining (8.0% → 6.5%), asset turnover improving (0.18x → 0.59x), leverage rising (1.72x → 2.03x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 8.0% | 0.18 | 1.72 | 2.5% |
| FY2024 | ₹0Cr | ₹0Cr | 8.6% | 0.18 | 1.82 | 2.9% |
| FY2025 | ₹0Cr | ₹0Cr | 6.5% | 0.59 | 2.03 | 7.8% |
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.