DuPont Decomposition
Why does PRICOLLTD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.4% = 6.4% × 1.34 × 1.92
Latest: FY2025
Profitability
Net Margin
6.4%
3.4% →6.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.34x
1.25x →1.34x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.92x
2.08x →1.92x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.6 pp over 4 years. Driven by net margin improving (3.4% → 6.4%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.4% | 1.25 | 2.08 | 8.9% |
| FY2023 | ₹0Cr | ₹0Cr | 6.5% | 1.46 | 1.86 | 17.7% |
| FY2024 | ₹0Cr | ₹0Cr | 6.4% | 1.54 | 1.70 | 16.6% |
| FY2025 | ₹0Cr | ₹0Cr | 6.4% | 1.34 | 1.92 | 16.4% |
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.