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
18.2% = 33.6% × 0.46 × 1.16
Latest: FY2025
Profitability
Net Margin
33.6%
22.6% →33.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.46x
0.14x →0.46x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.16x
1.25x →1.16x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 14.2 pp over 3 years. Driven by net margin improving (22.6% → 33.6%), asset turnover improving (0.14x → 0.46x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 22.6% | 0.14 | 1.25 | 4.0% |
| FY2024 | ₹0Cr | ₹0Cr | 32.7% | 0.13 | 1.18 | 5.0% |
| FY2025 | ₹0Cr | ₹0Cr | 33.6% | 0.46 | 1.16 | 18.2% |
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.