DuPont Decomposition
Why does QPOWER earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.2% = 20.0% × 0.41 × 1.37
Latest: FY2025
Profitability
Net Margin
20.0%
9.4% →20.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.41x
0.69x →0.41x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.37x
1.58x →1.37x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~11%. Driven by net margin improving (9.4% → 20.0%), asset turnover declining (0.69x → 0.41x), leverage falling (1.58x → 1.37x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.4% | 0.69 | 1.58 | 10.3% |
| FY2023 | ₹0Cr | ₹0Cr | 8.3% | 0.79 | 1.78 | 11.7% |
| FY2024 | ₹0Cr | ₹0Cr | 12.8% | 0.81 | 1.89 | 19.7% |
| FY2025 | ₹0Cr | ₹0Cr | 20.0% | 0.41 | 1.37 | 11.2% |
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.