DuPont Decomposition
Why does PTC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.1% = 3.6% × 1.32 × 2.11
Latest: FY2026
Profitability
Net Margin
3.6%
3.1% →3.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.32x
0.82x →1.32x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.11x
4.21x →2.11x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~10%. Driven by asset turnover improving (0.82x → 1.32x), leverage falling (4.21x → 2.11x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.1% | 0.82 | 4.21 | 10.7% |
| FY2023 | ₹0Cr | ₹0Cr | 2.9% | 0.92 | 3.31 | 8.9% |
| FY2024 | ₹0Cr | ₹0Cr | 2.9% | 1.09 | 2.94 | 9.3% |
| FY2025 | ₹0Cr | ₹0Cr | 5.8% | 1.20 | 2.22 | 15.5% |
| FY2026 | ₹0Cr | ₹0Cr | 3.6% | 1.32 | 2.11 | 10.1% |
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.