DuPont Decomposition
Why does PLASTIBLEN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.8% = 4.3% × 1.54 × 1.19
Latest: FY2025
Profitability
Net Margin
4.3%
4.4% →4.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.54x
0.41x →1.54x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.19x
1.23x →1.19x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.6 pp over 3 years. Driven by asset turnover improving (0.41x → 1.54x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 4.4% | 0.41 | 1.23 | 2.2% |
| FY2024 | ₹0Cr | ₹0Cr | 5.4% | 0.41 | 1.19 | 2.6% |
| FY2025 | ₹0Cr | ₹0Cr | 4.3% | 1.54 | 1.19 | 7.8% |
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.