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
16.9% = 16.4% × 0.29 × 3.51
Latest: FY2025
Profitability
Net Margin
16.4%
-22.7% →16.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.29x
0.11x →0.29x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.51x
4.37x →3.51x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 27.4 pp over 4 years. Driven by net margin improving (-22.7% → 16.4%), asset turnover improving (0.11x → 0.29x), leverage falling (4.37x → 3.51x).
Historical Decomposition
Last 4 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 | 16.4% | 0.29 | 3.51 | 16.9% |
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.