DuPont Decomposition
Why does PRECWIRE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
20.1% = 2.9% × 2.41 × 2.91
Latest: FY2026
Profitability
Net Margin
2.9%
2.5% →2.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.41x
2.91x →2.41x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.91x
2.41x →2.91x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.8 pp over 5 years. Driven by asset turnover declining (2.91x → 2.41x), leverage rising (2.41x → 2.91x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.5% | 2.91 | 2.41 | 17.3% |
| FY2023 | ₹0Cr | ₹0Cr | 2.1% | 3.10 | 2.06 | 13.2% |
| FY2024 | ₹0Cr | ₹0Cr | 2.3% | 2.95 | 2.10 | 14.4% |
| FY2025 | ₹0Cr | ₹0Cr | 2.2% | 3.20 | 2.18 | 15.6% |
| FY2026 | ₹0Cr | ₹0Cr | 2.9% | 2.41 | 2.91 | 20.1% |
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.