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
12.1% = 5.5% × 1.57 × 1.40
Latest: FY2025
Profitability
Net Margin
5.5%
6.0% →5.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.57x
0.50x →1.57x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.40x
1.39x →1.40x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.9 pp over 3 years. Driven by asset turnover improving (0.50x → 1.57x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 6.0% | 0.50 | 1.39 | 4.2% |
| FY2024 | ₹0Cr | ₹0Cr | 6.8% | 0.34 | 1.39 | 3.2% |
| FY2025 | ₹0Cr | ₹0Cr | 5.5% | 1.57 | 1.40 | 12.1% |
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.