DuPont Decomposition
Why does OSWALSEEDS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.1% = 1.4% × 2.34 × 2.40
Latest: FY2025
Profitability
Net Margin
1.4%
2.3% →1.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.34x
2.01x →2.34x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.40x
3.10x →2.40x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 6.0 pp over 4 years. Driven by asset turnover improving (2.01x → 2.34x), leverage falling (3.10x → 2.40x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.3% | 2.01 | 3.10 | 14.1% |
| FY2023 | ₹0Cr | ₹0Cr | 2.1% | 2.13 | 2.89 | 12.9% |
| FY2024 | ₹0Cr | ₹-0Cr | -1.6% | 2.17 | 3.09 | -10.3% |
| FY2025 | ₹0Cr | ₹0Cr | 1.4% | 2.34 | 2.40 | 8.1% |
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.