DuPont Decomposition
Why does NAVNETEDUL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
40.5% = 43.2% × 0.75 × 1.26
Latest: FY2025
Profitability
Net Margin
43.2%
12.1% →43.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.75x
1.02x →0.75x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.26x
1.44x →1.26x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 22.7 pp over 3 years. Driven by net margin improving (12.1% → 43.2%), asset turnover declining (1.02x → 0.75x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 12.1% | 1.02 | 1.44 | 17.8% |
| FY2024 | ₹0Cr | ₹0Cr | 14.6% | 0.99 | 1.35 | 19.4% |
| FY2025 | ₹0Cr | ₹0Cr | 43.2% | 0.75 | 1.26 | 40.5% |
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.