DuPont Decomposition
Why does NOVAAGRI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.5% = 9.3% × 0.88 × 1.53
Latest: FY2025
Profitability
Net Margin
9.3%
7.4% →9.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.88x
1.16x →0.88x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.53x
3.71x →1.53x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 19.2 pp over 4 years. Driven by net margin improving (7.4% → 9.3%), asset turnover declining (1.16x → 0.88x), leverage falling (3.71x → 1.53x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.4% | 1.16 | 3.71 | 31.7% |
| FY2023 | ₹0Cr | ₹0Cr | 9.7% | 1.16 | 2.83 | 32.1% |
| FY2024 | ₹0Cr | ₹0Cr | 11.2% | 0.85 | 1.54 | 14.7% |
| FY2025 | ₹0Cr | ₹0Cr | 9.3% | 0.88 | 1.53 | 12.5% |
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.