DuPont Decomposition
Why does PANSARI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.6% = 24.9% × 0.07 × 3.06
Latest: FY2025
Profitability
Net Margin
24.9%
6.1% →24.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.07x
0.27x →0.07x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.06x
1.85x →3.06x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.5 pp over 4 years. Driven by net margin improving (6.1% → 24.9%), asset turnover declining (0.27x → 0.07x), leverage rising (1.85x → 3.06x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.1% | 0.27 | 1.85 | 3.0% |
| FY2023 | ₹0Cr | ₹0Cr | 8.8% | 0.08 | 2.36 | 1.7% |
| FY2024 | ₹0Cr | ₹0Cr | 10.9% | 0.15 | 2.58 | 4.1% |
| FY2025 | ₹0Cr | ₹0Cr | 24.9% | 0.07 | 3.06 | 5.6% |
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.