DuPont Decomposition
Why does LORDSCHLO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.8% = 7.3% × 0.81 × 1.97
Latest: FY2026
Profitability
Net Margin
7.3%
13.4% →7.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.81x
1.20x →0.81x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.97x
1.72x →1.97x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 16.0 pp over 5 years. Driven by net margin declining (13.4% → 7.3%), asset turnover declining (1.20x → 0.81x), leverage rising (1.72x → 1.97x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 13.4% | 1.20 | 1.72 | 27.8% |
| FY2023 | ₹0Cr | ₹0Cr | 18.0% | 1.24 | 1.40 | 31.4% |
| FY2024 | ₹0Cr | ₹-0Cr | -2.2% | 0.84 | 1.59 | -2.9% |
| FY2025 | ₹0Cr | ₹0Cr | 2.3% | 0.72 | 2.07 | 3.4% |
| FY2026 | ₹0Cr | ₹0Cr | 7.3% | 0.81 | 1.97 | 11.8% |
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.