DuPont Decomposition
Why does ONWARDTEC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
17.5% = 8.2% × 1.47 × 1.46
Latest: FY2026
Profitability
Net Margin
8.2%
7.7% →8.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.47x
1.34x →1.47x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.46x
1.41x →1.46x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.0 pp over 5 years. Driven by asset turnover improving (1.34x → 1.47x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.7% | 1.34 | 1.41 | 14.5% |
| FY2023 | ₹0Cr | ₹0Cr | 2.6% | 1.82 | 1.39 | 6.6% |
| FY2024 | ₹0Cr | ₹0Cr | 7.2% | 1.65 | 1.39 | 16.4% |
| FY2025 | ₹0Cr | ₹0Cr | 5.5% | 1.57 | 1.40 | 12.1% |
| FY2026 | ₹0Cr | ₹0Cr | 8.2% | 1.47 | 1.46 | 17.5% |
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.