DuPont Decomposition
Why does PRIMESECU earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
18.6% = 48.0% × 0.35 × 1.12
Latest: FY2025
Profitability
Net Margin
48.0%
33.5% →48.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.35x
0.09x →0.35x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.12x
1.11x →1.12x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 15.4 pp over 3 years. Driven by net margin improving (33.5% → 48.0%), asset turnover improving (0.09x → 0.35x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 33.5% | 0.09 | 1.11 | 3.2% |
| FY2024 | ₹0Cr | ₹0Cr | 12.9% | 0.07 | 1.12 | 1.1% |
| FY2025 | ₹0Cr | ₹0Cr | 48.0% | 0.35 | 1.12 | 18.6% |
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.