DuPont Decomposition
Why does NATHBIOGEN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.0% = 10.6% × 0.36 × 1.59
Latest: FY2025
Profitability
Net Margin
10.6%
11.6% →10.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.36x
0.38x →0.36x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.59x
1.38x →1.59x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~6%. Driven by net margin declining (11.6% → 10.6%), leverage rising (1.38x → 1.59x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 11.6% | 0.38 | 1.38 | 6.1% |
| FY2024 | ₹0Cr | ₹0Cr | 11.9% | 0.38 | 1.44 | 6.5% |
| FY2025 | ₹0Cr | ₹0Cr | 10.6% | 0.36 | 1.59 | 6.0% |
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.