DuPont Decomposition
Why does LLOYDSME earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
22.6% = 21.9% × 0.70 × 1.47
Latest: FY2025
Profitability
Net Margin
21.9%
14.3% →21.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.70x
0.83x →0.70x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.47x
1.71x →1.47x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.4 pp over 4 years. Driven by net margin improving (14.3% → 21.9%), asset turnover declining (0.83x → 0.70x), leverage falling (1.71x → 1.47x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 14.3% | 0.83 | 1.71 | 20.2% |
| FY2023 | ₹0Cr | ₹-0Cr | -8.6% | 1.65 | 1.33 | -18.9% |
| FY2024 | ₹0Cr | ₹0Cr | 17.8% | 0.39 | 1.40 | 9.8% |
| FY2025 | ₹0Cr | ₹0Cr | 21.9% | 0.70 | 1.47 | 22.6% |
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.