DuPont Decomposition
Why does PATINTLOG earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.3% = 2.2% × 2.03 × 1.38
Latest: FY2025
Profitability
Net Margin
2.2%
1.0% →2.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.03x
1.31x →2.03x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.38x
1.53x →1.38x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.3 pp over 4 years. Driven by net margin improving (1.0% → 2.2%), asset turnover improving (1.31x → 2.03x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.0% | 1.31 | 1.53 | 1.9% |
| FY2023 | ₹0Cr | ₹0Cr | 1.8% | 1.61 | 1.46 | 4.2% |
| FY2024 | ₹0Cr | ₹0Cr | 1.9% | 1.51 | 1.61 | 4.6% |
| FY2025 | ₹0Cr | ₹0Cr | 2.2% | 2.03 | 1.38 | 6.3% |
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.