DuPont Decomposition
Why does NYKAA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.9% = 2.0% × 2.17 × 3.21
Latest: FY2026
Profitability
Net Margin
2.0%
1.1% →2.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.17x
1.42x →2.17x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.21x
1.97x →3.21x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 10.8 pp over 5 years. Driven by asset turnover improving (1.42x → 2.17x), leverage rising (1.97x → 3.21x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.1% | 1.42 | 1.97 | 3.1% |
| FY2023 | ₹0Cr | ₹0Cr | 0.4% | 1.73 | 2.14 | 1.4% |
| FY2024 | ₹0Cr | ₹0Cr | 0.5% | 1.86 | 2.69 | 2.6% |
| FY2025 | ₹0Cr | ₹0Cr | 0.8% | 2.00 | 3.06 | 5.1% |
| FY2026 | ₹0Cr | ₹0Cr | 2.0% | 2.17 | 3.21 | 13.9% |
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.