DuPont Decomposition
Why does PFIZER earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
17.2% = 28.7% × 0.51 × 1.17
Latest: FY2026
Profitability
Net Margin
28.7%
23.5% →28.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.51x
0.67x →0.51x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.17x
1.36x →1.17x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 4.2 pp over 5 years. Driven by net margin improving (23.5% → 28.7%), asset turnover declining (0.67x → 0.51x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 23.5% | 0.67 | 1.36 | 21.4% |
| FY2023 | ₹0Cr | ₹0Cr | 25.8% | 0.61 | 1.25 | 19.4% |
| FY2024 | ₹0Cr | ₹0Cr | 25.1% | 0.52 | 1.18 | 15.3% |
| FY2025 | ₹0Cr | ₹0Cr | 33.6% | 0.46 | 1.16 | 18.2% |
| FY2026 | ₹0Cr | ₹0Cr | 28.7% | 0.51 | 1.17 | 17.2% |
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.