DuPont Decomposition
Why does OSWALPUMPS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
54.5% = 13.1% × 1.46 × 2.85
Latest: FY2024
Profitability
Net Margin
13.1%
4.9% →13.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.46x
1.56x →1.46x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.85x
5.08x →2.85x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 15.7 pp over 3 years. Driven by net margin improving (4.9% → 13.1%), asset turnover declining (1.56x → 1.46x), leverage falling (5.08x → 2.85x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.9% | 1.56 | 5.08 | 38.8% |
| FY2023 | ₹0Cr | ₹0Cr | 9.3% | 1.47 | 3.19 | 43.3% |
| FY2024 | ₹0Cr | ₹0Cr | 13.1% | 1.46 | 2.85 | 54.5% |
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.