DuPont Decomposition
Why does ONEPOINT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.6% = 12.2% × 0.37 × 1.87
Latest: FY2026
Profitability
Net Margin
12.2%
2.6% →12.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.37x
1.10x →0.37x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.87x
2.56x →1.87x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.2 pp over 5 years. Driven by net margin improving (2.6% → 12.2%), asset turnover declining (1.10x → 0.37x), leverage falling (2.56x → 1.87x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.6% | 1.10 | 2.56 | 7.3% |
| FY2023 | ₹0Cr | ₹0Cr | 6.3% | 1.03 | 2.46 | 15.9% |
| FY2024 | ₹0Cr | ₹0Cr | 12.6% | 0.67 | 1.81 | 15.3% |
| FY2025 | ₹0Cr | ₹0Cr | 12.9% | 0.51 | 1.24 | 8.2% |
| FY2026 | ₹0Cr | ₹0Cr | 12.2% | 0.37 | 1.87 | 8.6% |
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.