DuPont Decomposition
Why does PRAXIS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
1859.9% = 3.6% × 0.95 × 535.48
Latest: FY2022
Profitability
Net Margin
3.6%
3.6% →3.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.95x
0.95x →0.95x
Revenue per ₹ of assets
Leverage
Equity Multiplier
535.48x
535.48x →535.48x
Assets funded by equity vs debt
Historical Decomposition
Last 1 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.6% | 0.95 | 535.48 | 1859.9% |
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.