DuPont Decomposition
Why does NAVINFLUOR earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.0% = 12.4% × 0.48 × 1.84
Latest: FY2025
Profitability
Net Margin
12.4%
19.6% →12.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.48x
0.20x →0.48x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.84x
1.62x →1.84x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.8 pp over 3 years. Driven by net margin declining (19.6% → 12.4%), asset turnover improving (0.20x → 0.48x), leverage rising (1.62x → 1.84x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 19.6% | 0.20 | 1.62 | 6.2% |
| FY2024 | ₹0Cr | ₹0Cr | 11.7% | 0.14 | 1.84 | 3.0% |
| FY2025 | ₹0Cr | ₹0Cr | 12.4% | 0.48 | 1.84 | 11.0% |
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.