DuPont Decomposition
Why does NAGREEKEXP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
2.1% = 0.6% × 1.42 × 2.35
Latest: FY2025
Profitability
Net Margin
0.6%
1.1% →0.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.42x
1.55x →1.42x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.35x
3.17x →2.35x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.6 pp over 4 years. Driven by asset turnover declining (1.55x → 1.42x), leverage falling (3.17x → 2.35x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.1% | 1.55 | 3.17 | 5.7% |
| FY2023 | ₹0Cr | ₹0Cr | 0.8% | 1.16 | 2.97 | 2.7% |
| FY2024 | ₹0Cr | ₹0Cr | 1.1% | 1.57 | 2.36 | 4.1% |
| FY2025 | ₹0Cr | ₹0Cr | 0.6% | 1.42 | 2.35 | 2.1% |
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.