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
20.0% = 19.6% × 0.72 × 1.42
Latest: FY2025
Profitability
Net Margin
19.6%
10.5% →19.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.72x
0.76x →0.72x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.42x
1.43x →1.42x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 8.7 pp over 3 years. Driven by net margin improving (10.5% → 19.6%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 10.5% | 0.76 | 1.43 | 11.4% |
| FY2024 | ₹0Cr | ₹0Cr | 23.2% | 0.74 | 1.43 | 24.6% |
| FY2025 | ₹0Cr | ₹0Cr | 19.6% | 0.72 | 1.42 | 20.0% |
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.