DuPont Decomposition
Why does QUICKHEAL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-2.5% = -4.2% × 0.48 × 1.25
Latest: FY2026
Profitability
Net Margin
-4.2%
24.3% →-4.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.48x
0.48x →0.48x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.25x
1.14x →1.25x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 15.8 pp over 5 years. Driven by net margin declining (24.3% → -4.2%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 24.3% | 0.48 | 1.14 | 13.3% |
| FY2023 | ₹0Cr | ₹0Cr | 2.3% | 0.56 | 1.18 | 1.5% |
| FY2024 | ₹0Cr | ₹0Cr | 8.3% | 0.57 | 1.17 | 5.5% |
| FY2025 | ₹0Cr | ₹0Cr | 1.8% | 0.53 | 1.19 | 1.1% |
| FY2026 | ₹0Cr | ₹-0Cr | -4.2% | 0.48 | 1.25 | -2.5% |
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.