DuPont Decomposition
Why does PIXTRANS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
18.9% = 19.4% × 0.80 × 1.23
Latest: FY2025
Profitability
Net Margin
19.4%
14.2% →19.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.80x
0.23x →0.80x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.23x
1.38x →1.23x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 14.4 pp over 3 years. Driven by net margin improving (14.2% → 19.4%), asset turnover improving (0.23x → 0.80x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 14.2% | 0.23 | 1.38 | 4.6% |
| FY2024 | ₹0Cr | ₹0Cr | 18.9% | 0.20 | 1.29 | 5.0% |
| FY2025 | ₹0Cr | ₹0Cr | 19.4% | 0.80 | 1.23 | 18.9% |
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.