DuPont Decomposition
Why does NUCLEUS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.9% = 13.3% × 0.69 × 1.40
Latest: FY2026
Profitability
Net Margin
13.3%
8.2% →13.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.69x
0.67x →0.69x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.40x
1.49x →1.40x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.6 pp over 5 years. Driven by net margin improving (8.2% → 13.3%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.2% | 0.67 | 1.49 | 8.3% |
| FY2023 | ₹0Cr | ₹0Cr | 20.1% | 0.73 | 1.43 | 20.9% |
| FY2024 | ₹0Cr | ₹0Cr | 23.2% | 0.74 | 1.43 | 24.6% |
| FY2025 | ₹0Cr | ₹0Cr | 19.6% | 0.72 | 1.42 | 20.0% |
| FY2026 | ₹0Cr | ₹0Cr | 13.3% | 0.69 | 1.40 | 12.9% |
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.