DuPont Decomposition
Why does PAR earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.5% = 13.3% × 0.84 × 1.21
Latest: FY2025
Profitability
Net Margin
13.3%
12.4% →13.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.84x
0.94x →0.84x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.21x
1.31x →1.21x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.9 pp over 4 years.
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 12.4% | 0.94 | 1.31 | 15.4% |
| FY2023 | ₹0Cr | ₹0Cr | 11.9% | 1.07 | 1.25 | 15.9% |
| FY2024 | ₹0Cr | ₹0Cr | 15.3% | 0.94 | 1.19 | 16.9% |
| FY2025 | ₹0Cr | ₹0Cr | 13.3% | 0.84 | 1.21 | 13.5% |
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.