DuPont Decomposition
Why does NINSYS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
42.9% = 18.8% × 1.23 × 1.85
Latest: FY2025
Profitability
Net Margin
18.8%
14.0% →18.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.23x
1.15x →1.23x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.85x
1.24x →1.85x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 23.0 pp over 4 years. Driven by net margin improving (14.0% → 18.8%), leverage rising (1.24x → 1.85x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 14.0% | 1.15 | 1.24 | 19.9% |
| FY2023 | ₹0Cr | ₹0Cr | 18.5% | 0.41 | 1.32 | 9.9% |
| FY2024 | ₹0Cr | ₹0Cr | 17.8% | 0.53 | 1.72 | 16.2% |
| FY2025 | ₹0Cr | ₹0Cr | 18.8% | 1.23 | 1.85 | 42.9% |
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.