DuPont Decomposition
Why does PARADEEP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.5% = 7.7% × 0.65 × 2.73
Latest: FY2025
Profitability
Net Margin
7.7%
0.3% →7.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.65x
0.34x →0.65x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.73x
3.04x →2.73x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 13.2 pp over 3 years. Driven by net margin improving (0.3% → 7.7%), asset turnover improving (0.34x → 0.65x), leverage falling (3.04x → 2.73x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 0.3% | 0.34 | 3.04 | 0.3% |
| FY2024 | ₹0Cr | ₹0Cr | 1.0% | 0.23 | 2.71 | 0.6% |
| FY2025 | ₹0Cr | ₹0Cr | 7.7% | 0.65 | 2.73 | 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.