DuPont Decomposition
Why does PAISALO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.0% = 26.0% × 0.15 × 3.42
Latest: FY2025
Profitability
Net Margin
26.0%
17.5% →26.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.15x
0.04x →0.15x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.42x
2.88x →3.42x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 11.3 pp over 3 years. Driven by net margin improving (17.5% → 26.0%), asset turnover improving (0.04x → 0.15x), leverage rising (2.88x → 3.42x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 17.5% | 0.04 | 2.88 | 1.8% |
| FY2024 | ₹0Cr | ₹0Cr | 19.7% | 0.05 | 2.97 | 2.7% |
| FY2025 | ₹0Cr | ₹0Cr | 26.0% | 0.15 | 3.42 | 13.0% |
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.