DuPont Decomposition
Why does NATCAPSUQ earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.3% = 0.4% × 0.39 × 1.80
Latest: FY2025
Profitability
Net Margin
0.4%
10.7% →0.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.39x
0.79x →0.39x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.80x
1.98x →1.80x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 16.5 pp over 4 years. Driven by net margin declining (10.7% → 0.4%), asset turnover declining (0.79x → 0.39x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 10.7% | 0.79 | 1.98 | 16.8% |
| FY2023 | ₹0Cr | ₹0Cr | 11.2% | 0.57 | 2.34 | 15.0% |
| FY2024 | ₹0Cr | ₹0Cr | 3.7% | 0.40 | 1.85 | 2.7% |
| FY2025 | ₹0Cr | ₹0Cr | 0.4% | 0.39 | 1.80 | 0.3% |
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.