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
15.6% = 2.3% × 3.13 × 2.18
Latest: FY2025
Profitability
Net Margin
2.3%
1.6% →2.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
3.13x
0.85x →3.13x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.18x
2.06x →2.18x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 12.8 pp over 3 years. Driven by asset turnover improving (0.85x → 3.13x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 1.6% | 0.85 | 2.06 | 2.9% |
| FY2024 | ₹0Cr | ₹0Cr | 2.5% | 0.83 | 2.10 | 4.3% |
| FY2025 | ₹0Cr | ₹0Cr | 2.3% | 3.13 | 2.18 | 15.6% |
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.