DuPont Decomposition
Why does OBEROIRLTY earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.2% = 42.5% × 0.23 × 1.45
Latest: FY2025
Profitability
Net Margin
42.5%
50.0% →42.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.23x
0.05x →0.23x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.45x
1.53x →1.45x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 10.2 pp over 3 years. Driven by net margin declining (50.0% → 42.5%), asset turnover improving (0.05x → 0.23x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 50.0% | 0.05 | 1.53 | 3.9% |
| FY2024 | ₹0Cr | ₹0Cr | 62.1% | 0.06 | 1.39 | 5.3% |
| FY2025 | ₹0Cr | ₹0Cr | 42.5% | 0.23 | 1.45 | 14.2% |
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.