DuPont Decomposition
Why does NUVOCO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
3.5% = 3.2% × 0.56 × 1.98
Latest: FY2026
Profitability
Net Margin
3.2%
0.1% →3.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.56x
0.54x →0.56x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.98x
2.15x →1.98x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.3 pp over 4 years. Driven by net margin improving (0.1% → 3.2%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 0.1% | 0.54 | 2.15 | 0.2% |
| FY2024 | ₹0Cr | ₹0Cr | 1.4% | 0.56 | 2.08 | 1.6% |
| FY2025 | ₹0Cr | ₹0Cr | 0.2% | 0.57 | 2.02 | 0.2% |
| FY2026 | ₹0Cr | ₹0Cr | 3.2% | 0.56 | 1.98 | 3.5% |
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.