DuPont Decomposition
Why does NITINSPIN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.1% = 5.5% × 1.10 × 1.98
Latest: FY2026
Profitability
Net Margin
5.5%
12.2% →5.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.10x
1.46x →1.10x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.98x
2.08x →1.98x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 25.2 pp over 5 years. Driven by net margin declining (12.2% → 5.5%), asset turnover declining (1.46x → 1.10x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 12.2% | 1.46 | 2.08 | 37.2% |
| FY2023 | ₹0Cr | ₹0Cr | 6.9% | 1.08 | 2.16 | 16.0% |
| FY2024 | ₹0Cr | ₹0Cr | 4.6% | 1.06 | 2.37 | 11.5% |
| FY2025 | ₹0Cr | ₹0Cr | 5.3% | 1.21 | 2.08 | 13.4% |
| FY2026 | ₹0Cr | ₹0Cr | 5.5% | 1.10 | 1.98 | 12.1% |
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.