DuPont Decomposition
Why does QUESS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.2% = 0.3% × 5.32 × 2.59
Latest: FY2025
Profitability
Net Margin
0.3%
0.7% →0.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
5.32x
0.73x →5.32x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.59x
2.38x →2.59x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.0 pp over 3 years. Driven by asset turnover improving (0.73x → 5.32x), leverage rising (2.38x → 2.59x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 0.7% | 0.73 | 2.38 | 1.2% |
| FY2024 | ₹0Cr | ₹0Cr | 2.0% | 0.78 | 2.23 | 3.5% |
| FY2025 | ₹0Cr | ₹0Cr | 0.3% | 5.32 | 2.59 | 4.2% |
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.