DuPont Decomposition
Why does LGEINDIA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
22.0% = 6.8% × 1.80 × 1.78
Latest: FY2026
Profitability
Net Margin
6.8%
6.8% →6.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.80x
1.80x →1.80x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.78x
1.78x →1.78x
Assets funded by equity vs debt
Historical Decomposition
Last 1 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2026 | ₹0Cr | ₹0Cr | 6.8% | 1.80 | 1.78 | 22.0% |
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.