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
1.5% = 4.4% × 0.31 × 1.13
Latest: FY2026
Profitability
Net Margin
4.4%
7.8% →4.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.31x
0.33x →0.31x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.13x
1.40x →1.13x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.0 pp over 5 years. Driven by net margin declining (7.8% → 4.4%), leverage falling (1.40x → 1.13x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.8% | 0.33 | 1.40 | 3.6% |
| FY2023 | ₹0Cr | ₹0Cr | 20.9% | 0.21 | 1.04 | 4.7% |
| FY2024 | ₹0Cr | ₹-0Cr | -0.4% | 0.19 | 1.13 | -0.1% |
| FY2025 | ₹0Cr | ₹-0Cr | -9.3% | 0.23 | 1.11 | -2.4% |
| FY2026 | ₹0Cr | ₹0Cr | 4.4% | 0.31 | 1.13 | 1.5% |
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.