DuPont Decomposition
Why does NEWGEN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
20.8% = 21.2% × 0.73 × 1.35
Latest: FY2025
Profitability
Net Margin
21.2%
21.1% →21.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.73x
0.70x →0.73x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.35x
1.36x →1.35x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~21%.
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 21.1% | 0.70 | 1.36 | 20.2% |
| FY2023 | ₹0Cr | ₹0Cr | 18.2% | 0.72 | 1.37 | 18.0% |
| FY2024 | ₹0Cr | ₹0Cr | 20.2% | 0.74 | 1.38 | 20.6% |
| FY2025 | ₹0Cr | ₹0Cr | 21.2% | 0.73 | 1.35 | 20.8% |
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.