DuPont Decomposition
Why does NAVKARCORP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-2.4% = -9.5% × 0.22 × 1.11
Latest: FY2025
Profitability
Net Margin
-9.5%
20.9% →-9.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.22x
0.21x →0.22x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.11x
1.04x →1.11x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 7.0 pp over 3 years. Driven by net margin declining (20.9% → -9.5%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 20.9% | 0.21 | 1.04 | 4.7% |
| FY2024 | ₹0Cr | ₹0Cr | 1.7% | 0.19 | 1.13 | 0.4% |
| FY2025 | ₹0Cr | ₹-0Cr | -9.5% | 0.22 | 1.11 | -2.4% |
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.