DuPont Decomposition
Why does OMAXAUTO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.8% = 6.0% × 0.75 × 1.54
Latest: FY2025
Profitability
Net Margin
6.0%
11.1% →6.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.75x
0.38x →0.75x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.54x
1.79x →1.54x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~7%. Driven by net margin declining (11.1% → 6.0%), asset turnover improving (0.38x → 0.75x), leverage falling (1.79x → 1.54x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.1% | 0.38 | 1.79 | 7.6% |
| FY2023 | ₹0Cr | ₹-0Cr | -8.4% | 0.59 | 1.73 | -8.5% |
| FY2024 | ₹0Cr | ₹0Cr | 3.4% | 0.69 | 1.68 | 3.9% |
| FY2025 | ₹0Cr | ₹0Cr | 6.0% | 0.75 | 1.54 | 6.8% |
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.