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
6.8% = 16.1% × 0.24 × 1.73
Latest: FY2026
Profitability
Net Margin
16.1%
326.5% →16.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.24x
0.05x →0.24x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.73x
1.16x →1.73x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 13.6 pp over 5 years. Driven by net margin declining (326.5% → 16.1%), asset turnover improving (0.05x → 0.24x), leverage rising (1.16x → 1.73x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 326.5% | 0.05 | 1.16 | 20.4% |
| FY2023 | ₹0Cr | ₹0Cr | 12.9% | 0.29 | 1.27 | 4.8% |
| FY2024 | ₹0Cr | ₹0Cr | 12.5% | 0.39 | 1.55 | 7.6% |
| FY2025 | ₹0Cr | ₹0Cr | 3.8% | 0.35 | 1.73 | 2.3% |
| FY2026 | ₹0Cr | ₹0Cr | 16.1% | 0.24 | 1.73 | 6.8% |
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.