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
14.7% = 4.6% × 1.22 × 2.64
Latest: FY2026
Profitability
Net Margin
4.6%
10.3% →4.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.22x
0.49x →1.22x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.64x
3.56x →2.64x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.2 pp over 5 years. Driven by net margin declining (10.3% → 4.6%), asset turnover improving (0.49x → 1.22x), leverage falling (3.56x → 2.64x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 10.3% | 0.49 | 3.56 | 17.9% |
| FY2023 | ₹0Cr | ₹0Cr | 6.4% | 0.45 | 3.04 | 8.7% |
| FY2024 | ₹0Cr | ₹0Cr | 1.8% | 0.58 | 2.71 | 2.8% |
| FY2025 | ₹0Cr | ₹0Cr | 3.9% | 1.52 | 2.73 | 16.2% |
| FY2026 | ₹0Cr | ₹0Cr | 4.6% | 1.22 | 2.64 | 14.7% |
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.