DuPont Decomposition
Why does OPTIEMUS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.1% = 3.4% × 1.22 × 2.24
Latest: FY2025
Profitability
Net Margin
3.4%
3.7% →3.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.22x
1.25x →1.22x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.24x
2.38x →2.24x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.8 pp over 3 years.
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 3.7% | 1.25 | 2.38 | 10.9% |
| FY2024 | ₹0Cr | ₹0Cr | 3.8% | 1.10 | 3.16 | 13.3% |
| FY2025 | ₹0Cr | ₹0Cr | 3.4% | 1.22 | 2.24 | 9.1% |
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.