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
19.0% = 1.4% × 5.04 × 2.61
Latest: FY2026
Profitability
Net Margin
1.4%
1.8% →1.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
5.04x
2.24x →5.04x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.61x
2.38x →2.61x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 9.6 pp over 5 years. Driven by asset turnover improving (2.24x → 5.04x), leverage rising (2.38x → 2.61x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.8% | 2.24 | 2.38 | 9.4% |
| FY2023 | ₹0Cr | ₹0Cr | 1.3% | 2.80 | 2.38 | 8.7% |
| FY2024 | ₹0Cr | ₹0Cr | 2.0% | 2.19 | 2.23 | 9.9% |
| FY2025 | ₹0Cr | ₹0Cr | 0.3% | 5.32 | 2.59 | 4.2% |
| FY2026 | ₹0Cr | ₹0Cr | 1.4% | 5.04 | 2.61 | 19.0% |
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.