DuPont Decomposition
Why does LLOYDSENGG earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.5% = 12.3% × 0.85 × 1.49
Latest: FY2025
Profitability
Net Margin
12.3%
3.7% →12.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.85x
0.47x →0.85x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.49x
1.90x →1.49x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 12.2 pp over 3 years. Driven by net margin improving (3.7% → 12.3%), asset turnover improving (0.47x → 0.85x), leverage falling (1.90x → 1.49x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 3.7% | 0.47 | 1.90 | 3.3% |
| FY2024 | ₹0Cr | ₹0Cr | 11.3% | 0.33 | 1.39 | 5.1% |
| FY2025 | ₹0Cr | ₹0Cr | 12.3% | 0.85 | 1.49 | 15.5% |
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.