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
8.2% = 12.9% × 0.51 × 1.24
Latest: FY2025
Profitability
Net Margin
12.9%
8.3% →12.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.51x
0.26x →0.51x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.24x
2.46x →1.24x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.8 pp over 3 years. Driven by net margin improving (8.3% → 12.9%), asset turnover improving (0.26x → 0.51x), leverage falling (2.46x → 1.24x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 8.3% | 0.26 | 2.46 | 5.3% |
| FY2024 | ₹0Cr | ₹0Cr | 12.7% | 0.21 | 1.81 | 4.8% |
| FY2025 | ₹0Cr | ₹0Cr | 12.9% | 0.51 | 1.24 | 8.2% |
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.