DuPont Decomposition
Why does PARACABLES earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.1% = 5.6% × 1.71 × 1.27
Latest: FY2025
Profitability
Net Margin
5.6%
1.4% →5.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.71x
1.19x →1.71x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.27x
2.38x →1.27x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 8.1 pp over 4 years. Driven by net margin improving (1.4% → 5.6%), asset turnover improving (1.19x → 1.71x), leverage falling (2.38x → 1.27x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.4% | 1.19 | 2.38 | 4.1% |
| FY2023 | ₹0Cr | ₹0Cr | 6.1% | 1.55 | 1.71 | 16.2% |
| FY2024 | ₹0Cr | ₹0Cr | 8.1% | 1.28 | 1.32 | 13.7% |
| FY2025 | ₹0Cr | ₹0Cr | 5.6% | 1.71 | 1.27 | 12.1% |
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.