DuPont Decomposition
Why does NEPHROPLUS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.9% = 7.7% × 0.68 × 1.32
Latest: FY2026
Profitability
Net Margin
7.7%
3.0% →7.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.68x
0.40x →0.68x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.32x
1.66x →1.32x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.9 pp over 5 years. Driven by net margin improving (3.0% → 7.7%), asset turnover improving (0.40x → 0.68x), leverage falling (1.66x → 1.32x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.0% | 0.40 | 1.66 | 2.0% |
| FY2023 | ₹0Cr | ₹-0Cr | -2.8% | 0.62 | 1.71 | -3.0% |
| FY2024 | ₹0Cr | ₹0Cr | 6.5% | 0.67 | 1.95 | 8.5% |
| FY2025 | ₹0Cr | ₹0Cr | 8.9% | 0.76 | 1.71 | 11.5% |
| FY2026 | ₹0Cr | ₹0Cr | 7.7% | 0.68 | 1.32 | 6.9% |
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.