DuPont Decomposition
Why does LEMONTREE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.3% = 15.7% × 0.34 × 3.08
Latest: FY2026
Profitability
Net Margin
15.7%
-22.7% →15.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.34x
0.11x →0.34x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.08x
4.37x →3.08x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 26.8 pp over 5 years. Driven by net margin improving (-22.7% → 15.7%), asset turnover improving (0.11x → 0.34x), leverage falling (4.37x → 3.08x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -22.7% | 0.11 | 4.37 | -10.5% |
| FY2023 | ₹0Cr | ₹0Cr | 13.7% | 0.22 | 4.37 | 13.4% |
| FY2024 | ₹0Cr | ₹0Cr | 14.7% | 0.25 | 4.17 | 15.4% |
| FY2025 | ₹0Cr | ₹0Cr | 15.3% | 0.32 | 3.51 | 16.9% |
| FY2026 | ₹0Cr | ₹0Cr | 15.7% | 0.34 | 3.08 | 16.3% |
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.