DuPont Decomposition
Why does OMFREIGHT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.7% = 4.5% × 1.56 × 1.80
Latest: FY2025
Profitability
Net Margin
4.5%
1.6% →4.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.56x
1.28x →1.56x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.80x
4.11x →1.80x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.4 pp over 4 years. Driven by net margin improving (1.6% → 4.5%), asset turnover improving (1.28x → 1.56x), leverage falling (4.11x → 1.80x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.6% | 1.28 | 4.11 | 8.2% |
| FY2023 | ₹0Cr | ₹0Cr | 5.8% | 1.54 | 2.19 | 19.5% |
| FY2024 | ₹0Cr | ₹0Cr | 2.5% | 1.52 | 1.77 | 6.8% |
| FY2025 | ₹0Cr | ₹0Cr | 4.5% | 1.56 | 1.80 | 12.7% |
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.