DuPont Decomposition
Why does LLOYDSENT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
1.9% = 4.0% × 0.34 × 1.41
Latest: FY2025
Profitability
Net Margin
4.0%
326.5% →4.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.34x
0.05x →0.34x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.41x
1.08x →1.41x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 17.1 pp over 4 years. Driven by net margin declining (326.5% → 4.0%), asset turnover improving (0.05x → 0.34x), leverage rising (1.08x → 1.41x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 326.5% | 0.05 | 1.08 | 19.0% |
| FY2023 | ₹0Cr | ₹0Cr | 12.9% | 0.29 | 1.18 | 4.4% |
| FY2024 | ₹0Cr | ₹0Cr | 12.5% | 0.39 | 1.24 | 6.1% |
| FY2025 | ₹0Cr | ₹0Cr | 4.0% | 0.34 | 1.41 | 1.9% |
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.