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
5.1% = 10.3% × 0.48 × 1.04
Latest: FY2026
Profitability
Net Margin
10.3%
40.9% →10.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.48x
0.32x →0.48x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.04x
1.17x →1.04x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 10.1 pp over 5 years. Driven by net margin declining (40.9% → 10.3%), asset turnover improving (0.32x → 0.48x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 40.9% | 0.32 | 1.17 | 15.2% |
| FY2023 | ₹0Cr | ₹0Cr | 27.6% | 0.29 | 1.11 | 8.8% |
| FY2024 | ₹0Cr | ₹0Cr | 30.2% | 0.35 | 1.12 | 11.8% |
| FY2025 | ₹0Cr | ₹0Cr | 48.0% | 0.35 | 1.12 | 18.6% |
| FY2026 | ₹0Cr | ₹0Cr | 10.3% | 0.48 | 1.04 | 5.1% |
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.