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
8.0% = 6.5% × 0.59 × 2.09
Latest: FY2025
Profitability
Net Margin
6.5%
16.9% →6.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.59x
0.70x →0.59x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.09x
2.08x →2.09x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 16.7 pp over 4 years. Driven by net margin declining (16.9% → 6.5%), asset turnover declining (0.70x → 0.59x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 16.9% | 0.70 | 2.08 | 24.7% |
| FY2023 | ₹0Cr | ₹0Cr | 13.1% | 0.79 | 1.90 | 19.6% |
| FY2024 | ₹0Cr | ₹0Cr | 3.2% | 0.60 | 2.04 | 3.9% |
| FY2025 | ₹0Cr | ₹0Cr | 6.5% | 0.59 | 2.09 | 8.0% |
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.