DuPont Decomposition
Why does PRITIKAUTO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.2% = 4.7% × 0.71 × 2.12
Latest: FY2025
Profitability
Net Margin
4.7%
5.3% →4.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.71x
0.93x →0.71x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.12x
2.09x →2.12x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.2 pp over 4 years. Driven by asset turnover declining (0.93x → 0.71x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.3% | 0.93 | 2.09 | 10.4% |
| FY2023 | ₹0Cr | ₹0Cr | 4.1% | 1.03 | 2.18 | 9.2% |
| FY2024 | ₹0Cr | ₹0Cr | 3.7% | 0.78 | 2.07 | 5.9% |
| FY2025 | ₹0Cr | ₹0Cr | 4.7% | 0.71 | 2.12 | 7.2% |
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.