DuPont Decomposition
Why does PHOENIXLTD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.1% = 27.7% × 0.19 × 2.08
Latest: FY2026
Profitability
Net Margin
27.7%
18.1% →27.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.19x
0.10x →0.19x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.08x
2.18x →2.08x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.1 pp over 5 years. Driven by net margin improving (18.1% → 27.7%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 18.1% | 0.10 | 2.18 | 4.1% |
| FY2023 | ₹0Cr | ₹0Cr | 51.3% | 0.15 | 2.10 | 15.9% |
| FY2024 | ₹0Cr | ₹0Cr | 28.2% | 0.20 | 2.03 | 11.6% |
| FY2025 | ₹0Cr | ₹0Cr | 25.8% | 0.18 | 2.06 | 9.4% |
| FY2026 | ₹0Cr | ₹0Cr | 27.7% | 0.19 | 2.08 | 11.1% |
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.